Vanguard moving to the, um, vanguard?
Dec 10th, 2007 | Filed under: Hedge Fund Industry TrendsFinancial Week reports that Vanguard, long-time champion of passive investing has shown an uncharacteristic interest in absolute return (read: hedge fund) investing recently. Says the paper:
“The mutual fund company renowned for championing cheap and passive investing for institutions and regular people alike quietly dipped its toe into the murky pool of hedge funds last week with the launch of a hedge-like mutual fund called Vanguard Market Neutral. And but for the exception of a few online diehard Bogleheads—indexing purists named for Vanguard founder and indexing pioneer Jack Bogle—almost no one batted an eyelash.”
Lipper senior analyst Ferenc Sanderson tells Financial Week that this is another example of mutual funds “jumping on the bandwagon” when it comes to using hedge-like strategies. And Morningstar’s Marta Norton says this is probably proof that hedge funds are “of much broader interest” than people thought, telling Financial News, “Maybe there is more staying power”.
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