Credit Suisse Aims To Replicate Hedge Fund Returns

Mar 10 2008 | 11:05am ET

Credit Suisse is turning to a trio of academics to give their investors alpha without actually investing in hedge funds. The firm’s Beta Strategies group has formed a partnership with hedge fund and alternative beta research specialists William Fung, David Hsieh and Narayan Naik to develop alternative beta strategies to replicate the risk and return characteristics of hedge fund strategies.

Fung and Hsieh, of the London Business School, and Naik, of Duke University, are widely recognized as pioneers in researching the fields of alternative beta and hedge fund replication, having explored these topics from an academic perspective since 1994.

“Institutional investors demand a detailed understanding of the return sources in their portfolios and are willing to substitute alternative beta factors through cost-effective replication strategies,” Oliver Schupp, head of Beta Strategies at CS, said.

“This new investment approach may ultimately allow investors to tactically adjust their portfolios to lower the expense ratio, enhance liquidity, hedge long positions and obtain a desired correlation.”


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of