Hedge Fund Replicators Gaining Momentum
| December 27th, 2009 | ||
| Hedge fund replicators that attempt to mimic the returns of hedge fund indices are gaining some traction. The replicators have lower fees (1%-2%) and are commonly structured as ETFs, mutual funds or separate accounts. According to a recent Wall Street Journal article, some of the early leaders in the space are: Goldman Sachs Asset Management ($2bn), State Street Global Advisors ($400mm), AlphaSimplex Group ($209mm), and IndexIQ ($200mm) in assets under management (AUM). In the article, Dr. Andrew Lo is quoted as saying “we view what we're doing as what Jack Bogle did at Vanguard in the 1970s” to the indexed mutual fund industry. Dr. Lo is the founder, Chairman and Chief Scientific Officer of AlphaSimplex Group, which manages the Natixis ASG Global Alternatives mutual fund. AlphaSimplex uses forwards and futures to achieve “hedge fund beta replication.” Dr. Lo is also a tenured quantitative finance professor at the Massachusetts Institute of Technology (M.I.T.). | ||
For Detailed Investor Profiles on these Investors, click below: |
AlphaSimplex Group |
Related People: Dr. Andrew W. Lo
Related Entities: Massachusetts Institute of Technology (M.I.T.);
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News
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