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Article: Hedge Fund Replicators: In Pursuit of Alternative Beta~Strategies offer added transparency, lower costs, but models are disputed.
- Article from:
- Securities Industry News
- Article date:
- November 12, 2007
- Author:
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Hedge fund replication strategies, which aim to provide hedge fund-like performance without the potential pitfalls, are garnering growing interest in the investment industry as a number of high-profile banks have taken up the approach.
Replication strategies have stirred debate not only about the trading methodologies they utilize, but the effect they may have on the hedge funds whose returns they seek to emulate. Few observers believe the replicators pose a threat to single hedge fund managers, but they could create competition for funds of funds--an investment strategy favored by institutional investors.
"Hedge fund replicators and funds of funds can ...