http://allaboutalpha.com/blog/2006/11/26/synthetic-funds-and-the-mongolian-barbeque/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Thu, 18 Mar 2010 13:53:53 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2006/11/26/synthetic-funds-and-the-mongolian-barbeque/comment-page-1/#comment-212 All About Alpha » Blog Archives » A Financial “Period of Enlightenment” Wed, 10 Jan 2007 02:15:20 +0000 http://allaboutalpha.com/blog/2006/11/26/synthetic-funds-and-the-mongolian-barbeque/#comment-212 [...] Ineichen’s conclusion: “…active risk managers need not worry any time soon” about being replaced by simple structured products. Â (Professor Harry Kat, who argues that hedge funds can be closely approximated by dynamic (passive) trading strategies, might argue otherwise): “Structured products offer asymmetric return profiles that suit the loss-aversion properties of investors.  However, the cost of these products narrows their return significantly.  There is no alpha in those products.  They typically lie below the capital market line, not above.” [...] [...] Ineichen’s conclusion: “…active risk managers need not worry any time soon” about being replaced by simple structured products. Â (Professor Harry Kat, who argues that hedge funds can be closely approximated by dynamic (passive) trading strategies, might argue otherwise): “Structured products offer asymmetric return profiles that suit the loss-aversion properties of investors.  However, the cost of these products narrows their return significantly.  There is no alpha in those products.  They typically lie below the capital market line, not above.” [...]

]]> http://allaboutalpha.com/blog/2006/11/26/synthetic-funds-and-the-mongolian-barbeque/comment-page-1/#comment-90 Monday links: three-fund solution « Abnormal Returns Mon, 27 Nov 2006 20:11:30 +0000 http://allaboutalpha.com/blog/2006/11/26/synthetic-funds-and-the-mongolian-barbeque/#comment-90 [...] All About Alpha with more on the “hedge fund cloning movement.” [...] [...] All About Alpha with more on the “hedge fund cloning movement.” [...]

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