ETFs Offer Hedge Fund Returns, Without The Fees

The following interview with Andrew Beer appeared in the October, 2016 issue of ETF Report.  In this exchange, Beer explains how Beachhead evaluates long/short strategies and replicates hedge funds using ETFs. Introduction: While many hedge fund strategies can deliver great performance, sky-high management fees often eat into returns, poaching as much as 80% of alpha over the past 10 years, according to Beachhead Capital Management. ETFs offer an alluring alternative, allowing investors to copy hedge fund strategies without all the fees. Since 2012, Beachhead has been doing just that. The New York City-based firm uses liquid ETFs and other instruments …

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Should you ignore financial academic research?

Excerpted text from Andrew Beer’s article in Investment Europe today: Marketers like nothing more than to pitch a product “grounded in decades of academic research.”  The implication is that objective academics have dispassionately studied market phenomena to uncover canonical truths.  In theory, this makes the investment decision easy – think “value outperforms growth” or, more recently, “quality stocks outperform.” Don’t be fooled.  Academic papers are subject to five very serious limitations: 1.    Publishing Bias 2.    The Big Splash Phenomenon 3.    The Assumptions Are Everything 4.    The World Changes – A Lot 5.    Business and Academia Overlap Click here to read …

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Risk Premia: Theory vs. Reality

In a recent issue of Hedge Fund Intelligence, Beachhead Capital Management’s Andrew Beer explains why the theory of risk premia investing is complicated in practice.   Click here to register and access the full article, or contact us for additional information

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P&I Article: What every allocator needs to know about hedge fund replication

From guest contributor Andrew Beer: In the current heated debate on hedge funds, there’s no middle ground. You’re either pro or con, in or out, red or blue. But this is, frankly, stupid. Hedge fund proponents make legitimate points about diversification, but fail to acknowledge where they’ve been flat-out wrong on many issues (e.g. wishful thinking that alpha would adequately cover fees). Likewise, the “out” camp is correct that fees are egregious, but offer no credible alternative. Redeem from hedge funds and invest in … bonds with negative yields? Equities at the tail end of the second-longest bull market in …

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Liquid Alternatives: What Happened and What Comes Next?

Earlier today, Andrew Beer moderated a panel discussion on liquid alternatives with Jerry Pascucci, Managing Director, Head of Alternative Investments at UBS and Robert Martorana, Director of Research at Dover Financial Research.  This NetMeeting, “Liquid Alternatives: What Happened and What Comes Next?” was offered exclusively to members of Money Management Institute.  If you would like to receive any of the highlights or key takeaways, please contact us by phone or via the link on our website.

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This tiny hedge fund has an incredible track record, and outsiders can’t understand how

Andrew Beer provides skeptical comments on hedge fund highlighted in Business Insider that almost never loses money: As for BlackBox, the performance is eye-catching, and it caught the people we asked about it by surprise. “Some of the best minds on Wall Street trade in these markets, and no one has figured out how to make 1,200 [basis points] over LIBOR and never lose money,” says Andrew Beer, managing partner at Beachhead Capital Management, an investment adviser.” Click here to read the full article  

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The alternative alternative ETF

In a recent interview in Wealth Adviser, Andrew Beer describes in detail how Beachhead Capital’s Dynamic Beta Strategy differs from smart beta ETFs and explains why the strategy is a viable option for institutional investors and consultants in search of an “alternative” alternative allocation for their portfolios. “In 2012 we thought there was an opportunity for US high net worth investors who are sensitive to tax issues to create a product using long ETFs. We wanted to create a product that could match or outperform their long/short hedge fund portfolio but only in long ETFs,” Beer explains. “We have found …

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Smart Money Insights: Weekly Brief July 19

A Tenuous Recovery in European Markets Markets have rebounded following the momentous Brexit vote in the U.K. on June 23rd. The S&P 500 and the MSCI EAFE have both rallied over 8% since June 28th. Despite the post-Brexit rebound, the Wall Street Journal has pointed out that investors are fleeing European equity funds. Approximately $9.7BN has been redeemed in the two weeks following the Brexit vote, which marked the 22nd consecutive week of outflows from European equities and approximately $54BN has been redeemed year-to-date according to the Journal. All of this suggests that investors have come to view European economic …

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Low-Fee ETFs Can Be a Form of Alpha, Says Beachhead Capital’s Andrew Beer

In a recent interview with Bloomberg, Andrew Beer shares his view on hedge fund replication and describes in detail how the Equity Hedge Dynamic Beta strategy utilizes a handful of ETFs to give investors exposure to the 40 largest equity hedge fund managers, without the standard 2-and-20 fee structure. Click here to read the full article

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The Hypocrisy That’s Turned Hedge Fund Activists Into Billionaires

By Andrew Beer, guest contributor to Forbes.com Hedge fund activists have attracted hundreds of billions of dollars in investor capital over the past decade with a strategy to bring accountability into corporate boardrooms. Prominent funds have taken on corporate icons ranging from Microsoft and DuPont to eBay and PepsiCo, running campaigns to refocus operations and increase returns of capital to shareholders, or spin and sell businesses entirely. But who is holding the activists accountable? Missing from the debate on hedge fund activists is a discussion how funds treat their own investors. Click here to continue reading the article

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