Hedge Fund Replication
Published Pioneering Research on Hedge Fund Replication in the Journal of Portfolio Management.
The last several decades have been defined by declining interest rates, dollar hegemony and increases in globalization.
The world has changed and so to has the landscape for investors.
Traditional 60/40 portfolios have seen a level of stress not anticipated by many investors. Combined with more muted forward looking expectations around bond and equity returns and it is no surprise that investors are starting to place more of an emphasis on alternative asset classes, diversification and hard-assets specifically.
A long history of alternative risk-management
The world (and therefore the investing landscape) is changing more rapidly now than anytime in recent history. As such we believe its paramount that asset managers be constantly researching. The era of “big data” is upon us and investors need to ensure that they are utilizing it to their advantage. We have a dedicated research arm at IDX Insights devoted to research and innovation.
Ever since the ground-breaking work of Markowitz, investors have understood the link between underwriting risk in exchange for an expectation around return. Equally important is understanding how risks vary over time. Our Risk-Conscious approach isn’t designed to avoid risk. It seeks to only avoid “bad” risks…whether it’s bonds or bitcoin.
Our research focus means we rely heavily on an evidence-based approach to investment management. That means we are systematic, rules-based and rely on time-tested principles both academically and empirically. Many times, much of our methodology will be published in our papers or on our research site.
The Fund does not invest directly in or hold bitcoin.
The price of bitcoin futures contracts should be expected to differ from the current cash price of bitcoin, which is sometimes referred to as the “spot” price of bitcoin. Consequently, the performance of the Fund should be expected to perform differently from the spot price of bitcoin. These differences could be significant.