Andrew Beer on the history of hedge funds

20th May, 2022 | Alternatives

Andrew Beer explores the challenges and evolution of bringing hedge fund strategies to a broader audience through mutual funds, ETFs, and UCITS vehicles. While traditional attempts to replicate hedge fund performance in accessible formats have largely failed, the discussion highlights how factor-based hedge fund replication offers a more promising approach. By identifying the key trades driving hedge fund returns, such as value versus growth or macroeconomic positions, this strategy delivers diversification, low fees, and daily liquidity without sacrificing performance. The speaker shares insights from a successful partnership with SEI Investments, where a strategy replicating 70 hedge funds, including managed futures, outperformed during market volatility. This innovative solution demonstrates how advanced hedge fund techniques can now support institutional-grade diversification in liquid, cost-efficient formats.