Portfolio Replication

Academic research over the last ten years has shown that most hedge funds are composed primarily of alternative beta. Alternative beta are the returns achieved from taking active long and short positions in order to generate positive average returns if the underlying market direction is correctly forecast. For example, if the S&P500 Index was forecast to go up over the next week, a long position in S&P500 futures would provide positive returns for the investor. If the price of crude oil was expected to decline over the next month, a short position in crude oil futures would also provide positive returns. As a result, most returns generated by hedge fund managers can be replicated at low cost using automated trading strategies.

dh provides professional assistance to investors who wish to explore the possibilities of using low cost replication strategies to replace part or all of their existing investment portfolios.

To find out more about dh Portfolio Replication please email: