Home>Finra checking out B-Ds that sold variable annuities with hedge funds
Finra checking out B-Ds that sold variable annuities with hedge funds
InvestmentNews.com
Wed, 5 Dec 2012
Finra is said to be investigating a handful of broker-dealers that sold VAs with subacccounts invested in hedge funds. Clients who bought the products lost $18 million, says an attorney.
Hedgefund -replicating ETFs and mutual funds can provide investors with similar return characteristics at a much lower cost, says Index IQ's Adam Patti.
Ramius' Vikas Kapoor discusses some of the drawbacks of common replication strategies and how his fund strives to avoid them while still providing the liquidity often absent in regular hedgefunds .
Goldman Sachs Asset Management's Theodore Enders says hedgefund replication can bring risk-reduction benefits without a lot of the traditional drawbacks of hedgefund investing.
By breaking down hedgefund returns into various factors, new ETFs can replicate returns at a lower cost and with greater liquidity, says ProShares' Joanne Hill.