Sun, Oct 2, 2016
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 2

Friday, December 13, 2013

amb
Adam Patti
Benedicte Gravrand, Opalesque Geneva:

Known variously as hedge fund replication, alternative beta, liquid alternatives, these assets attempt to resolve many of the problems institutional investors experienced in 2008, that is, transparency, liquidity and fidelity, writes Marc Freed in the Journal of Indexes. According to him, the three main analytical approaches to hedge fund replication today are mechanical (which copies actual positions held by hedge funds), distributional (winch infers the exposures of hedge fund portfolios from the statistical properties of time series of their returns), and factor-based (which identifies correlations between hedge fund indexes and conventional investment indexes).

Those approaches make for lively debates, and more than a little confusion among investors and providers. Andrew Beer of Beachhead capital gave his own perspective on where the confusions lie in Part 1 of this article, and two more replication experts talked to Opalesque about the common misconceptions about hedge fund replication; today is Adam Patti of IndexIQ.

The S&P500 of the hedge fund market According to Adam S.......................

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. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to