MUTUAL funds that mimic hedge fund strategies - the so-called liquid alternatives sector - were among the hottest investments just a few years ago. Despite lagging returns and setbacks at several noteworthy funds, retail investors until recently have stuck with them even as they have pulled billions of dollars out of other funds.
There may be early warning signs that that is about to change.
The current market leader is a trend-following financial futures fund called the AQR Managed Futures Strategy Fund, which has ridden the downturn in oil prices and interest rates to a recent peak of US$14.3 billion of assets.
Its sponsor, Clifford Asness's quantitative investment firm AQR Capital Management...
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