Barron’s: Hedge Fund ETFs Disappoint

ETFs that aim to replicate hedge fund returns employ many different strategies—with mixed results.

By Sarah Max — December 24, 2016


“Alternative beta “tends to produce more predictable results,” says Andrew Beer, managing partner at Beachhead Capital Management, which uses exchange-traded funds to create its own hedge fund replications for advisors and wealthy individuals.

His method: Track the 40 largest long/short hedge funds and use historical information to predict how they will respond to market changes. He then uses ETFs to choreograph similar moves.

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January 3, 2017