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Harry Kat updates research note on hedge fund replication, WSJ: George Soros wannabes probably shouldn`t lose much sleep over hedge fund trackers

Wednesday, December 27, 2006

Harry Kat updates research note on hedge fund replication Harry M. Kat, Professor of Risk Management and Director Alternative Investment Research Centre at London’s Cass Business School, told Opalesque he had recently come across some more information on the hedge fund index replication products of Merrill Lynch and Goldman Sachs and subsequently expanded and partially rewritten his paper on factor models vs. his ‘FundCreator’ approach to include that information.

Download updated research note ‘ Alternative routes to hedge fund return replication` from Opaleque: Source

WSJ: George Soros wannabes probably shouldn`t lose much sleep over hedge fund trackers From the WSJ: Firms such as Merrill Lynch & Co. and Goldman Sachs Group Inc. and a professor at Cass Business School in London have introduced strategies that can be used to track hedge funds or some of the strategies they use -- in effect, offering a passive way to get hedge-fund returns.

A quick glance at these strategies shows that they may offer returns similar to a hedge fund's. But even some of their creators say they aren't meant to be clones and generally won't closely track a hedge fund's moves. For that reason, George Soros wannabes probably shouldn't lose much sleep over the new index tools, as skilled hedge-fund managers aren't about to be replaced anytime soon.

"You can't program a computer with managem......................

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