Sat, Apr 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Misconceptions about hedge fund replication, Part 1

Thursday, December 12, 2013

amb
Benedicte Gravrand, Opalesque Geneva:

Hedge fund replication is the collective name given to a number of different methods that attempt to replicate hedge fund returns. With the belief that alpha is a zero-sum gain, more investors are now said to be looking to simply add "hedge fund beta" to their portfolio through replication products.

For example, we heard in August that the Global X Top Guru Holdings Index ETF, a hedge fund replication product, had gathered $114.8 million in 14 months of trading. And the Credit Suisse Liquid Alternative Beta Index is up 6.83% YTD (to end-Nov.)

However, hedge fund replication still remains misunderstood in many quarters.

"I personally invested in a hedge fund replication strategy since May 2007, and that’s actually the longest that any human being has been invested in a strategy," Andrew Beer, CEO of Beachhead, tells Opalesque. "To me, it’s an interesting intellectual exercise because there is so much misunderstanding about what these products are and what they are designed to do."

Beachhead Capital Management, with offices in New York and Lexington, MA, does customized hedge fund replication. The firm can replicate the performance of "high alpha direct hedge funds and funds of hedge funds," according to its presentatio......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its