Comments on: AAA Exclusive: An Interview with Managers of the World’s Newest Hedge Fund Replication Product http://allaboutalpha.com/blog/2008/01/17/aaa-exclusive-an-interview-with-managers-of-the-worlds-newest-hedge-fund-replication-product/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Fri, 19 Mar 2010 07:52:26 +0000 http://wordpress.org/?v=abc hourly 1 By: Bill aka NO DooDahs! http://allaboutalpha.com/blog/2008/01/17/aaa-exclusive-an-interview-with-managers-of-the-worlds-newest-hedge-fund-replication-product/comment-page-1/#comment-73508 Bill aka NO DooDahs! Fri, 18 Jan 2008 14:15:53 +0000 http://allaboutalpha.com/blog/2008/01/17/aaa-exclusive-an-interview-with-managers-of-the-worlds-newest-hedge-fund-replication-product/#comment-73508 I love the marketing gimmick being played by this fund, and others of its ilk. "We'll match the hedge fund 'beta' and return stream, but be transparent and less expensive, so PLEASE mister institution, place your 'alternative' allocation with US!" Here's another idea. Use the same approach, but rather than model an index, model a **constant** return!, and market it as a "whole enchilada" approach where someone could potentially put ALL of their money. They could still market it as an alternative investment. Think about it †if they can achieve close to a constant monthly return stream, it is by default a non-correlated return stream when compared to **any other asset class** - and thus, a pretty good deal. I love the marketing gimmick being played by this fund, and others of its ilk. “We’ll match the hedge fund ‘beta’ and return stream, but be transparent and less expensive, so PLEASE mister institution, place your ‘alternative’ allocation with US!”

Here’s another idea. Use the same approach, but rather than model an index, model a **constant** return!, and market it as a “whole enchilada” approach where someone could potentially put ALL of their money.

They could still market it as an alternative investment. Think about it †if they can achieve close to a constant monthly return stream, it is by default a non-correlated return stream when compared to **any other asset class** – and thus, a pretty good deal.

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