Wed, Oct 1, 2014
A A A
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

Banner

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. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  3. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  4. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba

  5. Unconstrained bond funds: Where hedge fund strategies meet mutual funds[more]

    From CNBC.com: For all the talk and buzz around indexes, or passive investing, the next big thing for bond mutual fund investors may be strategies that are the exact opposite. The rapid growth of "unconstrained bond funds" has been thrust into investor spotlight given last Friday's stunning news tha