Wednesday, 30 July 2014
Last updated 57 min ago
Jan 15 2014 | 12:33pm ET
The founder of hedge fund administrator GlobeOp Financial Services has launched what he calls the first hedge-fund industry tracker fund.
Hans Hufschmid's New York-based Altß seeks to replicate the hedge fund industry—without the fees or underperforming funds. The vehicle, which has begun investing with $100 million from the firm's executives and their families and friends, seeks to find correlations between funds with similar strategies, using the data to build a portfolio designed to mirror the hedge fund industry.
"The trend is towards indexes in everything," Hufschmid told the Financial Times. "That option exists in equities and in fixed-income, but it does not exist in hedge funds in an efficient manner. What does it even mean to track the industry? There is no FTSE 100 or S&P500 to track."
Instead, Altß relies on a database of 10,000 funds. The firm aims to screen out poorly-run funds from that universe, while overweighting more popular strategies, such as long/short equity.
Hufschmid was most recently CEO at GlobeOp, acquired in 2012 by SS&C Technologies. He founded the administrator after the collapse of Long Term Capital Management, where he was co-head in London.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…