Statistical Arbitrage L/S Available To Mom and Pop Investors

In an increasingly competitive mutual fund environment, where passive investing and smart beta is the trend du jour, can a small niche fund find success? It can if that strategy is unique and offers a noncorrelated returns stream, says Dick Pfister, whose firm, AlphaCore, recently launched the AlphaCore Statistical Arbitrage Fund (STAKX). But the alternatives industry veteran has a warning for those looking to allocate towards market neutral programs: watch for overcrowding.

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With a knowing nod, Pfister, who helped found investment advisor Altegris in the late 1990s and supervised the launch of some of the first alternative-focused mutual funds, has seen this movie before.

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