SSgA Offers Investors HF Beta Replication Strategy

Nov 14 2008 | 11:49am 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

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