9/22 to 9/24

Hedge Fund Replication and Alternative Beta

CAIA members receive a 10% discount off registration costs

Where US investors allocate to alternative beta and replication products
 
The hedge fund industry is slowly beginning to acknowledge that a large part of its returns comes not from alpha, but from "alternative beta" factors - systematic exposures to a diverse array of risk premia.
One of the key implications of alternative beta theory is that it is possible to create synthetic hedge funds, which replicate the alternative beta exposures of hedge funds. The aim of these funds is to generate hedge fund-like returns without hedge fund fees.
NEW YORK, February 19, 2008 - A new study released today reveals that while a small portion of end investors are currently invested in hedge fund replication products, a third of respondents plan to invest in these products by the beginning of 2009. The worldwide survey, conducted by Terrapinn and AllAboutAlpha.com, examined the investment attitudes of asset managers, consultants, investors and service providers.

Key findings of the study include:

7% of investors currently invest in either hedge fund replication or alternative beta
21% of investors plan to invest within the next 12 months
Investors cite liquidity and lower fees as the top benefits of hedge fund replication
The top obstacles to investing are that the products only replicate hedge fund averages and investors do not know enough about them
 

Event Organizer: Terrapinn

Location: The Princeton Club, New York