New mutual fund to ape hedge performance

Hedge fund performance replication has come to the mutual fund industry in the form of the IQ Alpha Hedge Strategy Fund.
JUL 01, 2008
Hedge fund performance replication has come to the mutual fund industry in the form of the IQ Alpha Hedge Strategy Fund, which was launched yesterday. The fund, which does not yet have a ticker symbol, is designed to mimic the performance of the IQ Alpha Hedge Fund Index, which was created in December and is based on several underlying strategies that were established in March 2007. Interest in hedge funds has grown enormously over the past decade, however, the vast majority of investors have not had access to this important asset class,” said Adam Patti, chief executive of IndexIQ, the Rye Brook, N.Y.-based company that created the index and is managing the mutual fund. Like most hedge fund replication indexes, this one will invest primarily in exchange traded funds and other liquid securities, but not directly in any hedge funds. It also employs 25% leverage to enhance performance. The retail-class shares have a $2,500 minimum investment requirement and have a 1.64% total expense ratio. Year-to-date through June, the index was down 1.6%, which compares to an 11.9% decline by the Standard & Poor’s 500 stock index over the same period.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income