Sachs' Art imitates hedge life.

Investment Adviser, December, 2006

hedge funds

Goldman Sachs' hedge fund clone, the Absolute Return Tracker index, has the potential to open up the investment vehicle to more retail investors via cheaper costs and less risk, advisers said.

The Absolute Return Tracker index uses an algorithm to aggregate third-party hedge fund data. This is then replicated potentially to generate hedge fund performance at a lower cost.

Performance characteristics from hedge funds are put into the Art model on a monthly basis; Goldman Sachs stressed that the information used for the index was all freely available.

Art will be available for a flat fee of 1 per cent, compared to annual charges of between 4 per cent and 7 per cent for a typical fund of hedge funds.

Goldman said...

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