Frontier blends synthetic replicators with hedge funds to create a unique ‘active’ cocktail
Mon Dec 5, 2011
UK-based manager finds a way to give ‘honest’ returns after fees and costs
By Claire Makin
After years of questioning the foundations of the investment
industry, Michael Azlen has clear ideas about what does and
does not add value. Azlen, the executive chairman and founder
of Frontier Investment Management, believes that very few
managers can beat the averages after fees and costs, and that
the investment world should be more honest about it.
Given this harsh reality, Frontier aims to capture the
'betas’ of different asset classes to provide a
low-cost alternative to active management.
Along the way, Frontier has created a unique hedge fund
tracker product that blends synthetic replicators with single
managers. "We’ve produced a way to access hedge
fund returns with low cost and high liquidity and without the
Madoff factor," Azlen says. He strongly believes that
alternative betas delivered in innovative ways are where the
future of the industry lies.
Still relatively small, with a little...
ISSN: 2151-1845 / CDC10004H
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