Bringing core and satellite approaches to hedge funds

academic paper

Given that most active managers still have dominant passive exposure to their benchmark, the core/satellite approach suggests investing passively in a low-fee index fund (or enhanced index product) as a core portfolio and a variety of active satellite managers with higher tracking error, instead of paying high fees on the passively managed part of their portfolio.

Core/satellite portfolio construction is seen as effective for institutions that want to diversify their portfolios, without

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here