January 3, 2017

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 Excerpt: “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. Barron’s subscribers: click here to read the full article

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Hedge funds fees take a trim

Link to FT article with quote from Andrew Beer Traditional ‘2 and 20’ fees are becoming outdated as managers seek to keep investors happy by: Lindsay Fortado — December 22, 2016 Excerpt: The willingness to negotiate on fees shows how the longstanding 2 and 20 formula for hedge fund fees is becoming outdated. While there has always been pressure on hedge fund managers to reduce their fees, some of the highest in finance, lacklustre performance this year by several of the biggest names in the industry has forced funds who once billed some of the highest rates in the industry …

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