Hedge replication strategies set for 2007 breakthrough year, says Partners Group
Jan 16th, 2007 | Filed under: Alternative Beta & Hedge Fund ReplicationBy: HedgeWeek
Published: January 12, 2007
Hedge fund uber-guru Lars Jaeger seems to be at odds with the industry he helped create. He tells HedgeWeek.com that hedge fund replication strategies are a close-enough approximation of hedge funds - and much cheaper. Says HedgeWeek:
“According to Dr Lars Jaeger, who is responsible for the development of the programme, it is based on the realisation that although hedge funds bill themselves as generators of alpha, with fee levels to match, in reality 80 per cent of their returns are attributable to beta, albeit of a different kind to that in the long-only markets.”
Jaeger is quick to point out the potential cost savings involved with cutting fees at several levels. Continues HedgeWeek:
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