FINRA issued an investor alert regarding the "unique
characteristics and risks" presented by "alternative
funds." See
http://op.bna.com/srlr.nsf/r?Open=rhil-98ktb8.
In a release, FINRA explained that "alt" mutual funds
are United States Securities and Exchange Commission-registered and
publicly offered, and hold "more non-traditional in-vestments
and employ more complex trading strategies than traditional mutual
funds." Alt funds, according to FINRA, invest in
anything ranging from global real estate, commodities, and
leveraged loans, to start-up companies and unlisted securities that
offer exposure beyond traditional stocks, bonds and cash.
These funds also might hold derivatives and employ a short- selling
strategy, while some alt funds are structured to hold other
alternative funds. This alert was to hopefully inform
investors regarding these risks. Moreover, FINRA said
those interested in investing in an alt fund should consider its
investment structure,
