Fidelity Investments is jumping into liquid alternatives, products that offer regular investors access to hedge-fund like strategies and are raking in billions of dollars amid rising interest rates and increased market volatility.
Liquid alternatives are registered mutual funds that took off following the financial crisis only to fall from favor as the Federal Reserve’s easy money policies buoyed stocks and other plain-vanilla investments. The sector staged a comeback during the pandemic, adding $29 billion last year and marking the first time since 2015 that inflows exceeded redemptions, according to Morningstar Inc.
The new unit is part of Fidelity’s push to expand its alternative investment capabilities. The Boston-based asset manager already offers some strategies for investing in distressed debt, real-estate debt, private equity and Bitcoin.
Read more: BNN Bloomberg
