SSgA Offers Investors HF Beta Replication Strategy

Nov 14 2008 | 12:49pm ET

State Street Global Advisors is now offering its hedge fund beta replication strategy via the firm’s new investment company, State Street Global Advisors Luxembourg SICAV.

Dubbed Premia, SSgA’s strategy seeks to generate long-term capital appreciation while mitigating the manager-specific risk and high fees associated with direct hedge fund investment. This strategy uses modern indexing techniques to approximate the overall exposure of hedge funds to systematic market, or “beta” risks.

State Street developed the strategy with academics William Fung and Narayan Naik of the London Business School and David Hsieh of Duke University.

“The Premia strategy is an appealing alternative for investors interested in gaining low-cost exposure to the risk premia that research suggests drive the majority of hedge fund returns, while providing the liquidity and transparency that many clients require,” said Kanesh Lakhani, senior managing director of State Street Global Advisors in the U.K.

Versions of SSgA’s Premia strategy have been in place for more than a year in a variety of segregated mandates.


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

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: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of