Read previewFaced with higher rates and a daunting fundraising climate, hedge funds are wooing investors with a seemingly antithetical pitch: index investing with a twist.
Hedge fund industry insiders are abuzz right now about "portable alpha," a blast-from-the-past strategy that's undergoing a revival.
According to the Morgan Stanley white paper, it can take on a variety of forms, including "dedicated portable alpha funds, portable alpha share classes, portable alpha feeder funds and other solutions."
Advertisement"It's a nice way of smuggling hedge funds into your portfolio if you're an allocator," said Jon Caplis, CEO of hedge fund research firm PivotalPath.
He said much of the industry still hasn't woken up to the appetite for portable alpha solutions and the potential boon to hedge funds.
Persons:
—, punchier, Kim Shaw, Morgan Stanley, There's, Shaw, Penny Novick, Morgan, Novick, Bill Gross, Myron Scholes, PIMCO's, Roark Stahler, Jon Caplis, Russell, PIMCO, Sabrina Callin, Brian Payne, Payne, Caplis, hasn't
Organizations:
Service, Trading, Business, Man, CME Group, BlackRock, Barclays, Russell Investments, Institutional, State, Investor, BCA Research, Teachers, Investors
Locations:
Winton, American, Illinois