http://allaboutalpha.com/blog/2008/01/30/hedge-fund-replication-delicacy-or-a-bunch-of-baloney/ A finance blog about hedge funds, portable alpha and alternative investing. Mon, 13 Feb 2012 11:26:54 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2008/01/30/hedge-fund-replication-delicacy-or-a-bunch-of-baloney/comment-page-1/#comment-76755 Bill aka NO DooDahs! Thu, 31 Jan 2008 00:28:03 +0000 http://allaboutalpha.com/blog/2008/01/30/hedge-fund-replication-delicacy-or-a-bunch-of-baloney/#comment-76755 I still say that, instead of targeting the return stream of the (who am I kidding, not "the" but one of many!) hedge fund index, they should shoot for a constant return stream at different CAGR levels. If they can even partially achieve smoothness in return, they will not only be noncorrelated to the stock market, but will be a better potential hedge fund substitute and a possible choice for larger allocations. I still say that, instead of targeting the return stream of the (who am I kidding, not “the” but one of many!) hedge fund index, they should shoot for a constant return stream at different CAGR levels. If they can even partially achieve smoothness in return, they will not only be noncorrelated to the stock market, but will be a better potential hedge fund substitute and a possible choice for larger allocations.

]]>