Wilshire: 2017 A Strong Year For Liquid Alternatives

Jan 22 2018 | 7:45pm ET

Liquid alternatives tracked with the traditional hedge fund brethren in recovering both return and asset momentum last year, according to the latest edition of the Wilshire Liquid Alternatives Industry Monitor, although liquidations still outpaced new launches. 

Wilshire, a major player in the liquid alts space and home to the Wilshire Liquid Alternative Index and its related subindexes, publishes the report quarterly to provide information on index returns, fund launches and closures, asset changes, and capital flows in the liquid alternatives industry.

Key details from the company’s Q4 and full-year 2017 data:

  • 21 new liquid alternative funds were launched in Q4 2017, including 11 Equity Hedge Funds and 5 Multi-Strategy Funds. 
  • There were 9 liquidations during the quarter.
  • AUM in the liquid alternatives universe increased by $4.4 billion during Q4.
  • There were approximately $4.3 billion in net inflows into the Liquid Alternatives Universe in Q4 2017.
  • 49 new liquid alternative funds were launched in 2017, including 23 equity hedge funds and 12 multi-strategy funds. There were 61 liquidations.
  • There was a $35 billion increase in the AUM of the Liquid Alternatives Universe during the year, due to a combination of positive fund flows and organic growth driven by performance.
  • For the full year, relative value funds had the largest net inflows, pulling in +$10.5 billion, while event driven funds experienced net outflows three quarters in a row and lost $1.7 billion in net outflows – the largest net outflow across the liquid alternatives universe.

Founded in 1972, Wilshire Associates is an independent investment consulting and services firm that provides plan sponsors, investment managers and financial intermediaries with a wide range of services. Its business units include Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets, and it is home to the Wilshire 5000 Total Market Index. Based in Santa Monica, California, the firm provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately $8 trillion.


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