After years of stellar growth, adoption of liquid alternatives at wirehouses ground to a halt last year. From our perspective, "generation one" liquid alts had three major issues: hype versus reality, asset allocation versus returns chasing, and fees. After years of stellar growth, adoption of liquid alternatives at wirehouses ground to a halt last year, according to a recent study by the Money Management Institute and Dover Financial Research called Distribution of Alternative Investments Through Wirehouses (2016). Consequently, despite growing risks in 60/40 portfolios, most retail investors are significantly under-invested relative to target allocations. On top of this, some big...