Fundcreator: Reply to the Critics

14 Pages Posted: 2 Oct 2007 Last revised: 6 Jun 2016

Date Written: September 28, 2007


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.

Keywords: Hedge fund, synthetic fund, replication

JEL Classification: G20, G23

Suggested Citation

Kat, Harry M. and Palaro, Helder P., Fundcreator: Reply to the Critics (September 28, 2007). Available at SSRN: or

Helder P. Palaro

Independent ( email )

United Kingdom

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