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
By  Bloomberg
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

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave