QAI is barely positive for the trailing 12 months and has posted a three-year annualized return of 2,9%, versus 16.6% for the S&P 500.

In the mutual fund business, funds of hedge funds are fighting to stay relevant, Reuters reported Friday.

“Fund of funds charge their investors fees for selecting and then investing in hedge fund managers, and have proved popular with clients making their first move into these so-called alternative investments,” according to the report. “But the sector has also faced criticism for high fees and is yet to recover from redemptions during the financial crisis. Returns have also been questioned.”

Other exchange traded products in the loosely-defined hedge fund/alternative category include Credit Suisse Merger Arbitrage ETN (NYSEArca: CSMA), iShares Diversified Alternatives (NYSEArca: ALT), ProShares Hedge Replication (NYSEArca: HDG) and SPDR Multi-Asset Real Return (NYSEArca: RLY).

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