Tue, Oct 25, 2016
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

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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa