Thu, Oct 20, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds are developing 'cheap’ smart beta products – Part 2

Tuesday, May 27, 2014

Komfie Manalo, Opalesque Asia:

Hedge funds are developing cheap smart beta products that imitate the performance of hedge funds without the huge fees, said consultancy firm Towers Watson. In fact, Towers Watson is developing its own smart beta products.

Towers Watson was able to generate a higher annualized return of 3.1% between 2007 and 2013 by removing excessive fees using smart beta strategies. The returns were higher compared to 1.8% gains from hedge fund indices during the same period.

According to Financial News, AQR and Bridgewater have been peddling risk parity products that seek uncorrelated returns from a range of assets.

Other hedge fund managers who were pioneers of smart beta were James Norman, president of fund manager QS Investors and Eric Shirbini, global product specialist at financial research institute Edhec-Risk. Shirbini is in tandem with Amundi Asset Management to take on active managers through a smart beta exchange traded fund of ETF.

Indeed smart beta is a hot item. Towers Watson said its clients made over twice as many new investments ......................

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 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 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 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. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p