http://allaboutalpha.com/blog/2007/02/09/hedge-fund-replication-is-imitation-crab-meat-according-to-major-hedge-fund-company/ Hedge funds, portable alpha, 130/30 alpha-centric investing, alternative investment Thu, 29 Jul 2010 20:51:13 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2007/02/09/hedge-fund-replication-is-imitation-crab-meat-according-to-major-hedge-fund-company/comment-page-1/#comment-551 All About Alpha » Blog Archives » Movie Stars, Super Models, and Alternative Beta Tue, 13 Feb 2007 02:23:17 +0000 http://allaboutalpha.com/blog/2007/02/09/hedge-fund-replication-is-imitation-crab-meat-according-to-major-hedge-fund-company/#comment-551 [...] Fung’s research corroborates what the industry has sensed for some time now: that investable hedge fund indexes under perform their non-investable peers.  Even when adjusted for management fees, the investable CSFB, HFRI and MSCI still under performed the non-investable versions of these funds (see recent post on one manager who royally panned these investable products). Â Fung proposes another method of capturing alternative betas that might not succumb to the “certain balls and chains” that seem to stymie the existing investable indexes. The manacles to which Fung refers include: high fees, opacity, illiquidity, and hedge fund risk [...] [...] Fung’s research corroborates what the industry has sensed for some time now: that investable hedge fund indexes under perform their non-investable peers.  Even when adjusted for management fees, the investable CSFB, HFRI and MSCI still under performed the non-investable versions of these funds (see recent post on one manager who royally panned these investable products). Â Fung proposes another method of capturing alternative betas that might not succumb to the “certain balls and chains” that seem to stymie the existing investable indexes. The manacles to which Fung refers include: high fees, opacity, illiquidity, and hedge fund risk [...]

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