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.


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