I have always throught return-distribution characteristics associated with alternative strategies is -ve skewness and high kurtosis but CFAI EOC Q26 reading 25 seems to suggest otherwise. I know the question is worded strangely but i still cant figure out why the the return-distribution characteristics associated with alternative strategies is positive skewness and low kurtosis!!!

The positive skewness comes from the stipulation that the investment strategy reduce downside risk.

It’s possible that they also inferred low kurtosis from that as well (i.e., thinner tails, so that extreme negative returns are less likely), or they may have mentioned something about kurtosis in the text. I haven’t read it thoroughly, so I’m not sure on that point.

I misread the question. I thought the question was asking for the general return distribution characterists of alternatives which i thought would be similar to hedge funds - high kurtosis and -ve skewness.