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Maple Ridge Pension Fund is deciding between a traditional Private Hedge Fund (Limited Partnership) and a new Alternative Mutual Fund (Liquid Alternative) under NI 81-102. Which comparison of these two structures is accurate?
The Private LP is strictly capped at 300% aggregate exposure, whereas the Liquid Alternative fund has no regulatory limit on borrowing.
The CIRO suitability requirements apply only to the Liquid Alternative fund because the Private LP is exempt from all dealer supervision.
The Liquid Alternative fund offers significantly higher transparency and daily liquidity, while the Private LP likely has lower transparency and lock-up periods.Correct
The Private LP structure ensures a higher correlation to public equity markets, making it a better choice for traditional portfolio balancing.
Why
Private LPs typically report quarterly, whereas NI 81-102 funds are prospectued and provide much higher transparency and daily/weekly liquidity.
