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What will a non-traditional portfolio manager most likely manage? Select all that apply.Review LaterHedge FundETFInsurance CoVenture Capital

Question

What will a non-traditional portfolio manager most likely manage? Select all that apply.

  • Hedge Fund
  • ETF
  • Insurance Co
  • Venture Capital
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Solution

A non-traditional portfolio manager will most likely manage:

  1. Hedge Fund: Non-traditional portfolio managers often manage hedge funds. These are alternative investments using pooled funds that employ numerous different strategies to earn active return, or alpha, for their investors.

  2. ETF: An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product, with shares that are tradable on a stock exchange. ETFs are similar to mutual funds, but they trade like a stock on an exchange.

  3. Venture Capital: Non-traditional portfolio managers may also manage venture capital. This is a type of private equity and a form of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Insurance Co is not typically managed by a non-traditional portfolio manager. They are usually managed by traditional portfolio managers who focus on fixed income securities, equities, and other traditional asset classes.

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