(HedgeCo.Net) Given the resurgence of interest, the liquid alternatives sector is poised for a wave of new launches over the next 12–24 months.
SEI’s recent ETF conversion is just one early move. Other asset managers are expected to follow suit by converting mutual funds, launching new strategy ETFs, or packaging quant and alternative strategies in more accessible forms.
The operational and regulatory infrastructure is becoming more mature: platforms now better support derivatives, risk overlays, and alternative strategy compliance in liquid wrappers.
Key themes to watch in new launches include:
- Hybrid wrappers (blended liquid / semi?liquid features)
- Hedged share classes (to manage currency effects)
- Modular strategy access (allowing customization)
- Lower minimums, especially targeting advisors or retail channels
- Better reporting, risk transparency, and governance standards
However, the timing is crucial. If macro markets become turbulent, new offerings may struggle to attract flows. The successful launch will depend not just on product design but on marketing, education, and credibility.
In sum, the revival of liquid alts is gaining momentum, and 2025 may well mark a turning point in how these strategies are perceived and deployed. The next phase will hinge on execution, differentiation, and whether performance can match the growing expectations.