Fundcreator: Reply to the Critics
Harry M. Kat
Helder P. Palaro
September 28, 2007
Abstract:
Since the publication of our first paper on hedge fund replication in 2005, our FundCreator methodology has met with many positive reactions. There have also been some negative responses though. With investors clearly becoming confused as a result of the amount of disinformation that is being circulated, in this short paper we address the 10 most common points of criticism. We argue that most of these are largely unjustified and fairly trivial at best and no reason whatsoever to doubt the capability of FundCreator to deliver exactly what it promises: returns with predefined statistical properties.
Number of Pages in PDF File: 14
Keywords: Hedge fund, synthetic fund, replication
JEL Classification: G20, G23
working papers series
Suggested Citation
Kat, Harry M. and Palaro, Helder P., Fundcreator: Reply to the Critics (September 28, 2007). Available at SSRN: http://ssrn.com/abstract=1017873 or http://dx.doi.org/10.2139/ssrn.1017873
