Agecroft Partners predicts that the hedge fund industry will set a record for assets this year based on several emerging trends identified through its contact with more than 2,000 institutional investors and 300 hedge fund organizations during 2012.
Hedgefund -replicating ETFs and mutual funds can provide investors with similar return characteristics at a much lower cost, says Index IQ's Adam Patti.
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.
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.