The Securities and Exchange Commission (SEC) is reviewing “hedge fund mutual funds” being offered to average investors, evaluating leverage risk in these “uncorrelated” investments. Mutual funds were designed as a method to enable investors to obtain stock diversification through a small investment, typically a positive risk management strategy. Investments in hedge funds, normally a preserve for the technically defined “accredited” well-to-do investor, were recently made available through common mutual funds with the notion they could help further diversify investors from potential economic storms. The problem with these mutual funds is they utilize often opaque strategies with managers sometimes accustomed to…
SEC Reviewing "Hedge Fund Mutual Funds"
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.