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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.
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Learn about the theory changing the face of asset allocation
Why attend?
INVESTORS: Gain an understanding of the alternative beta risk factors that drive hedge fund returns provides greater transparency into your investments; better tools for diversification and risk control; and an improved benchmark to measure alpha. Investors not invested in hedge funds can benefit from hedge fund risk premias without the high fees, opacity and lock-ups.
HEDGE FUNDS: Hedge fund selection will be more sophisticated as investors and consultants analyze whether returns are attributable to alternative beta or pure alpha. True alpha generators will be able to stand apart from their beta providing peers.
FUNDS OF HEDGE FUNDS: Hedge fund replication and alternative beta products provide new tools for asset allocators and risk managers. They offer more sophisticated derivatives for hedging, or for increasing exposure to specific factors and strategies.
» Reserve your seat now
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Network with your peers
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Don't miss this opportunity to enagage and debate the industry's brightest minds
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.
Investors are already registering - confirmed investors include:
- Lehigh University
- APG Investments
- Pearl Group
- World Bank
- Meyer and Co
- AP3
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