Deutsche Bank hedge fund-of-funds joins march on retail market
Aug 13th, 2007 | Filed under: Portable Alpha & Alpha/Beta SeparationWith the ink still wet on UBS’s agreement to manage a 130/30 fund for Canadian retail investors (see related posting), Deutsche Bank is now pitching its institutional “portable alpha” strategy to the US mass market.
The fund is called DWS Alternative Allocation Plus and according to the DB’s press release, it will use the firm’s year-old “iGAP” strategy (“Integrated Global Alpha Platform”). The iGAP has so far been offered only to institutional investors (see press release announcing that fund’s launch back in 2006).
We put portable alpha in quotations since we’re still not clear whether this fund really involves porting alpha – the refining, manipulating, or recompiling alpha and beta. According to DB, the fund is a simple fund-of-funds that may also include “other derivative instruments”.
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- New Deutsche Bank hedge fund replication offering gets both laurels and darts
- Mutual fund company launches retail portable alpha funds based on “real” alpha
- Deutsche Bank puts it all in perspective
- Mellon: Retail investors showing “a lot of interest” in what institutions are doing with hedge funds
- State Street runs up the score in 130/30 March Madness
[...] Quant turmoil aside, the “..secular shift away from high-beta mutual funds and toward bifurcated combinations of (commoditized) ETFs and (high-alpha-content) funds…” is still intact. (via All About Alpha) [...]