Flirting with Models cover image

Andrew Beer & Adam Butler - Attack of the Managed Futures Clones

Flirting with Models

CHAPTER

Replicating an Index for Broad-Based Exposure to the Hedge Fund Industry

In this chapter, they discuss the implementation process for replicating an index and building a portfolio. They highlight the efficacy of using a smaller set of factors or markets to achieve a high degree of correlation. They also emphasize the power of an ensemble approach, where combining signals from different models outperforms individual models. They mention the historical skepticism around replication but highlight its success over the years. They compare the cost-effectiveness of replication to other strategies and provide a track record of their own outperformance. Overall, they encourage investors to consider replication for broad-based exposure to the hedge fund industry.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner