What is the advantage of investing in a HF clone versus an HF? Jayson Funke Graduate School of Geography Clark University 950 Main Street Worcester, MA 01610
-----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Daniel Davies Sent: Monday, September 10, 2007 3:56 PM To: [email protected] Subject: Re: [PEN-L] Hedge Fund Clones yeah, me. what do you wanna know? It's a somewhat fashionable idea at the moment. The theory is that you can replicate the performance of the hedge fund indices to within a reasonable error with a fairly simple regression model, trading futures to replicate hedge fund performance on the cheap. the problem appears to be, as we've discovered recently, that there are plenty of periods during which a "reasonable error" in a regression model is not so darn reasonable. It's actually reasonably sensible to have a quantitative futures trading strategy of some sort or other in your portfolio if you're a big and risk-tolerant investor, but this "hedge fund replication" thing is more branding than finance IMO. best dd -----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Jayson Funke Sent: 10 September 2007 20:06 To: [email protected] Subject: Hedge Fund Clones Anyone on PEN-L familiar enough with hedge funds to comment on this? http://usa.terrapinnmedia.com/go.asp?/bTUS001/mLJUC44/uII0Z4/xFG1Q4 Jayson Funke Graduate School of Geography Clark University 950 Main Street Worcester, MA 01610
