Food for thought, page-24

Yes and there other listed options for diversification that provide income with a cap and collar so you gain less in a rising market, but lose less in a falling market.

One problem with ALF is the lack of transparency. In a long only fund we know the shares held and can pick funds whose investments we are comfortable with eg exposure (or not) to resources, tech or bio-medical. With ALF we have NO idea what "bets" are being taken and whether we are comfortable with them. We can only judge by outcomes. That is normal with hedge funds, but I would like more info at least on what went wrong, or right in history and why.