Mon, Apr 27, 2015
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 3

Monday, December 16, 2013

amb
Lars Jaeger
Benedicte Gravrand, Opalesque Geneva:

Lars Jaeger, a well-known expert on alternative beta, talks to Opalesque about the common misconceptions about hedge fund replication from a provider’s angle.

In Part 1, Andrew Beer of Beachhead gave his perspective and so did Adam Patti of IndexIQ in Part 2 of this article.

A bottom-up approach Lars Jaeger, founder and CEO of Alternative Beta Partners AG, a Swiss-based investment manager specializing in alternative beta and insurance linked securities, thinks the initial way hedge fund replication was done was flawed.

"Hedge fund replication has been for most offerings based upon the replication of a specific index or a specific time series through statistical means," he tells Opalesque. "Let’s say you take the Hedge Fund Research database or an index, you apply certain statistical methods, specifically linear regression models, and then you invest into those factors as they come out of the regression. That was developed by a few providers, specifically investment banks, and they coined this 'hedge fund replication,’ which is really replication of a hed......................

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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner