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

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note