Individual investors have many enemies: high frequency trading algorithms, dark pools, rogue hedge fund managers, fat-finger traders and Fed interventions, just to name a few.
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 .
Hedgefund -replicating ETFs and mutual funds can provide investors with similar return characteristics at a much lower cost, says Index IQ's Adam Patti.
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.