New Credit Suisse Research Paper Examines the Liquidity Benefits of Hedge Fund Replication Strategies in Alternative Portfolios

Jun 28, 2010, 10:23 ET from Credit Suisse AG

NEW YORK, June 28 /PRNewswire-FirstCall/ -- Credit Suisse today released a new whitepaper, "Portfolio Idea: Enhancing Liquidity in Alternative Portfolios", that examines liquid alternative beta strategies and their impact on portfolio liquidity.

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Dr. Jordan Drachman, Head of Research for Alternative Beta Strategies in the Asset Management division at Credit Suisse, said "The paper explores a challenge that many investors face in their alternative portfolios: how to increase portfolio liquidity without sacrificing potential returns, especially in a post-crisis, low-yield environment. While interest has been returning to the hedge fund space, investors today are seeking more liquid, transparent and cost effective solutions for gaining access to the asset class. Our research, including the case studies outlined in this paper, suggests that alternative beta strategies may be a viable solution for obtaining hedge fund-like returns while also providing access to capital when needed."

Key questions addressed in the paper include:

  • How is it possible for hedge fund returns to be replicated through liquid instruments?
  • What factors should be considered when evaluating various replication models?
  • How can implementing an alternative beta strategy improve the liquidity profile of a multi-strategy hedge fund portfolio?
  • What are the trade-offs to consider when implementing an alternative beta approach?

Click here to view the whitepaper. Additional information can be found on the Credit Suisse Alternative Beta website, www.credit-suisse.com/alternativebeta.  

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