AlphaSimplex's aim: to capture industry's beta

ASSET TV INTERVIEW

US boutique's Andrew Lo on why all alpha within hedge fund market turns to beta

The rise of ETFs is bringing a growing focus on indexation, and indexation of increasingly exotic markets. But US-based boutique AlphaSimplex has gone a stage further, with a portfolio designed to capture hedge fund beta. The boutique was acquired by Natixis Global Asset Management in 2007 and the strategy is now available via the Luxembourg-domiciled Ucits III ASG Laser fund. The man behind the portfolio, Dr Andrew Lo, talked to Asset TV about exactly what returns and risks he is looking to capture and why all alpha eventually turns into beta. What is the idea behind the strategy? I...