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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