Indiana Grain Company, LLC

Posted: 09/16/09

By: tomgrisafi

Greenwich, Connecticut-based financial firm True Beta has launched a new factor-based hedge fund replication service designed as an investable benchmark. But according to the firm, unlike traditional hedge fund strategies the new offering does not have headline risk or high fees.

“Following the market and fund management upheaval of 2008, investors are increasing their hedge fund allocations,” said Rabbe Ekholm, CEO of True Beta. “However, they now also demand liquidity and transparency, and increasingly want to separate the alpha and beta in their hedge fund portfolios.”

True Beta is independently managed and designed to serve as a benchmark for the hedge fund industry, with a fully transparent methodology and execution.

“Since the vast majority of hedge fund returns come from beta, there is no need to pay high fees for base-line performance,” said Ekholm. “We encourage investors to focus on the real alpha generators in their manager selection, and leave the beta to us.”

Source: Bloomberg, FINalternatives

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