Richard Kang1

Hedge Fund Replication Strategies: What's Under the Hood?

No news of one in existence or in development from what I know. In good time PM. However, there are some closed end funds managed by fund-of-funds whose underlying strategy would be classified as "hedge funds". The spread between NAV and market price often makes these bit of "hit and miss" in my opinion. My guess is someone develops a whole family of ETFs with each fund somehow representing a particular style (US equity long-short; covertible arb; global macro; etc). In my opinion, the concept and implementation of replication strategies allows for ETF development more than any other innovation from the industry in recent years.