If you can't believe it's not alpha - well then, it might just be alternative beta!

It's cheaper, it's better, it's alternative beta, say some proponents of hedge fund replication funds. Armed with some healthy scepticism, Solomon Teague dug deeper...

Alternative beta enthusiasts say investors are wasting time and money seeking out hedge fund managers who can consistently deliver alpha, and claim portfolios can be diversified cheaply and effectively using replicated products.

Michael Azlen, chief executive and founder of Frontier Capital Management, declares himself "somewhat an alpha sceptic" in explaining why he created his company, which, in performance terms, can hold its head high in the company of global macro hedge funds.

Azlen points

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