Individual investors wary of the bull market in stocks and worried about a bond bubble are finding a home in liquid alternative funds, said William Kinlaw, Head of Portfolio and Risk Management at State Street Associates. Kinlaw said investors are seeking out hedged mutual funds to diversify their holdings. He also said that the popularity of liquid alternatives is rising because they offer a less expensive option to hedge funds while offering similar strategies which have not widely been available to individual investors in the past. Finally, Kinlaw said that investors should not put all their assets into liquid alternative funds, but a level that feels comfortable to their risk tolerance.

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