Alternative Beta Fund Beats Indices

Jun 6 2008 | 8:01am ET

Alternative beta shop Stonebrook Capital Management is once again singing the praises of its Alternative Beta Fund, which it set up as a hedge fund replicator with greater liquidity and transparency than traditional hedge funds. 

Despite a difficult market environment, founder and chief investment officer Jerome Abernathy said the fund matched the returns of the major hedge fund indices “with an astoundingly high correlation.”

As of the end of April, the Alternative Beta Fund was up 3.18% with 6.39% volatility over its first 12 months versus HFRI Fund Of Funds Composite index’s 1.78% return with 6.97% volatility for the same period.
 
“Large diversified fund-of-funds struggled over this period,” said Abernathy. “Because of our lower aggregate fees, we beat most of them by a significant margin.”
 
Abernathy added that alternative beta is a liquid alternative investment that belongs in the same category as hedge fund-of-funds, 130/30, and Global Tactical Asset Allocation.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of