Hedge fund ETFs ruffle active managers

Some ETF providers say they can replicate hedge fund returns at a cheaper rate than the industry. Funds of hedge funds point out the difficulties

As soon as hedge funds were required to disclose their equity holdings to regulators, it seems inevitable that others would set up funds designed to ape these holdings.
 
But it is yet to be seen whether these hedge fund exchange-traded funds (ETFs) – and other funds that replicate hedge funds at a cheaper rate – will pose a threat to the fund of hedge funds (FoHF) community and pique the interests of institutional investors.
 
“If I were a fund of hedge funds, I would be very anxious right now,”