Investment bank Barclays Capital has launched a Luxembourg-domiciled hedge fund replicator fund which is UCITS III compliant.
The fund is designed to offer investors exposure to performance of the hedge fund industry through the investment bank’s Long Barclays Alternative Replicator Index. The replication model was designed by the quantitative portfolio strategies team within BarCap.
The index benefits from several innovations like the use of options to capture the non-linear profile of hedge fund returns. The fund uses liquid, transparent instruments across asset classes including: equities, fixed income, volatility, commodities and foreign exchange.
The fund can be used for tactical asset allocation because of it uses the UCITS wrapper, according to Csaba Koppany, director of equity and