Astute investors are constantly looking for greater diversification with the goal of
achieving exceptional returns uncorrelated to the global equity markets. To satisfy this demand, alternative investment managers coming from either the closed-end or open-end school have become increasingly innovative. A prime example is the emergence of hybrid fund structures. Designed to focus primarily but not exclusively on illiquid investments, these vehicles combine the longer-term investment strategies, investor commitments and capital calls of closed-end private equity funds with trading and hedging strategies associated with open-end hedge funds.