Beta Trackers A Threat to Closet Indexers

Hahn, Avital Louria
December 2006
Investment Dealers' Digest;12/11/2006, Vol. 72 Issue 47, p7
Trade Publication
The article focuses on the new Goldman index called Absolute Return Tracker (ART) in the U.S. The index will be adjusted monthly based on historic data provided by a third party, which gathers information on hedge funds. ART will charge about one percent for giving investors exposure to hedge fund-like investments and could benefit lower-performing hedge funds. It therefore has the potential to draw funds away from those managers whose performance is not much better than the index.


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