GlobeOp Founder, LTCM Vet Launches Hedge Fund Tracker

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.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.