The idea behind hedge fund replication is that the majority of hedge fund returns after fees is due to exposure to markets, or beta, rather than to the skill of the manager. (onwallstreet.financial-planning.com)
They apply regression techniques to identify each year the optimal set of factors (weighted ETFs) for explaining hedge fund returns over the prior 24 months. (cxoadvisory.com)
Significant numbers of trading strategies are already destined to prove disappointing, a point that recent data on the distribution of hedge fund returns seem to be confirming. (cansofunds.com)