As competition not only among mutual fund companies intensifies but is further challenged by the encroachment of hedge funds, more firms will be offering alternative investment funds, the Financial Times reports. And as a result, assets in such funds could soon account for as much as 10% of the industry’s assets. Alternative asset funds include market-neutral and 130/30 and other types of long-short funds.

“Long-short is the future of the industry,” said Ric Thomas, manager of enhanced strategies at State Street Global Strategies. “It’s like the introduction of the forward pass in football.”

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