DYNAMIC BETA
TARGET PRE-FEE PERFORMANCE
MINIMIZE SINGLE MANAGER RISK
REASONABLE FEES
POSITION-LEVEL TRANSPARENCY
DAILY LIQUIDITY
CUSTOMIZABLE
WHY DYNAMIC BETA?
Dynamic Beta portfolios seek to match or outperform portfolios of leading hedge funds by identifying, and investing directly in, the key drivers (factors) that explain recent pre-fee performance. DBi’s proprietary Dynamic Beta Engine is based on over a decade of research into the primary sources of returns among Equity Long/short, Managed Futures and Multi-strategy hedge funds. Dynamic Beta portfolios consist only of highly-liquid futures and/or ETFs.
Factor tilts explain the majority of hedge fund returns
Minimizes single manager risk by replicating the risk profile of a diversified portfolio of hedge funds
Fee disintermediation gives a 300bps head start versus a typical portfolio of hedge funds
What we do
- Replicate portfolios of leading hedge funds using factor models
- Invest only in highly liquid futures
- Focus on three core strategies:
- Multi-Strategy – since 2007
- Equity Hedge – since 2012
- Managed Futures – since 2015
- Combine those strategies into portfolios to meet specific client objectives
What we don't do
- Invest directly in hedge funds
- Replicate single funds
- Replicate highly illiquid strategies