Tue, Dec 1, 2015
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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From PIonline.com: Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Commodities - Stung by oil, distressed-debt traders see worst losses since '08[more]

    From Bloomberg.com: It’s mid-November, but for investors who trade in the debt of distressed companies, the year’s already done -- and they lost. Hedge funds that specialize in the debt are grappling with their worst declines in seven years. Funds managed by Knighthead Capital Management, Candlewood

  4. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  5. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega