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A recent article in the Economist magazine predicted that 2016 could be the first year since “the worst of the financial crisis” that more hedge funds are closed than are launched. Mutual funds and ETFs that pursue hedge-fund strategies – so-called “liquid alts” – have also been shuttering at an accelerated pace, and two more recently announced plans to liquidate: the Collins Alternative Solutions Fund (MUTF: CLLIX ) and the Lazard Master Alternative Portfolio (MUTF: LALTX ). Collins Alternative Solutions Fund According to a February 19 filing with the Securities and Exchange Commission (“SEC”), Collins Capital Management advised the Board of Trustees governing the Collins Alternative Solutions Fund to close and liquidate the fund. New investments were halted immediately, and the fund was planned to be liquidated entirely by February 26. The fund was managed by a number of external sub-advisors. Based on data from Morningstar, the fund had assets of $21.7 million as of the end of January, and returned -14.26% for the 1-year period ending January 31, 2016. Lazard Master Alternative Portfolio On February 24, Lazard announced plans to liquidate its Lazard Master Alternative Portfolio. The fund was closed to new investors as of that date, and it was expected to liquidate on or around March 1. According to Fund Action , Lazard has joined “a long list of providers who have seen funds fall by the wayside after failing to garner enough assets in their alternatives portfolios.” The fund, which debuted on the first day of 2015, generated returns of +0.30% in its first year of operation, but then lost 4.09% in the first two months of 2016. These year-to-date returns through February 29 ranked LALTX in the bottom 15% of funds in its Morningstar category, and undoubtedly sealed its fate. As of the end of February, the fund’s assets under management had dwindled to just $16.9 million. Past performance is not an indicator of future performance. Jason Seagraves contributed to this article. Scalper1 News
Scalper1 News