January 2008
Intermediate to advanced
289 pages
6h 55m
English
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14
Hedge Fund Indices and Replication
14.1 OVERVIEW
In recent years there has been a significant attempt to offer access to the hedge fund universe by indexation and replication. In the case of the former approach, an index compiler will calculate the overall return of a wide range of underlying hedge funds and reflect this in a hedge fund index, but also produce an investable version of this index as an investment vehicle where the returns can actually be accessed by an investor. In the case of replication, a more recent innovation, a provider will attempt to replicate hedge fund returns by taking exposure to factor based returns and/or other financial instruments with the aim of allowing investors to experience hedge fund-like returns without the cost, lack of transparency, operational risk or illiquidity. In this chapter I will discuss the benefits and downsides of investing through investable hedge fund indices and replication techniques.
14.2 HEDGE FUND INDICES
A hedge fund index is an entity that seeks to reflect the returns of the hedge fund universe. Such indices could be used as benchmarks or comparators for hedge fund and hedge fund of funds performance or just serve as a reflection of hedge fund returns. Most hedge fund indices are uninvestable, in as much as their returns could not be replicated on invested capital due to the fact that many of the constituent hedge funds are closed to new investment. Some uninvestable hedge fund indices do have investable versions that ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.