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IndexIQ's Chief Investment Strategist, Professor Robert Whitelaw, has published a new whitepaper covering the rationale behind the development of hedge fund replication vehicles, overview of construction methodologies and applications. Based in Rye Brook, New York, IndexIQ develops index-based alternative investment solutions.
... Over the past 10 years, the academic community
has done substantial research into the tracking
and replication of hedge fund results. Recently,
several firms have launched hedge fund index
replication strategies using a variety of equity,
fixed-income and derivative products. These
strategies appear to be targeted primarily at
institutional and high net worth investors.
IndexIQ, a leading developer of next-generation
index and quantitative investment strategies,
takes these replication strategies further,
bringing transparency to an opaque process
and opening up the field to all investors.
Leveraging internal expertise in quantitative
product development and exchange-traded
funds (ETFs), IndexIQ has created a set of
strategies that capture the risk/return characteristics
of popular hedge fund strategies by
using portfolios of highly liquid ETFs. The IQ
HedgeTM suite of indexes offers the potential
for lower costs and reduced risk, as well as
greater transparency and liquidity, compared
with traditional hedge funds and existing
synthetic hedge funds. By seeking to make
hedge-fund-like returns available to all inves...................... To view our full article Click here
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