Even better than the real thing?

Investment banks are upping their efforts to replicate hedge fund strategies through quantitative, rules-based products. A variety of indexes has emerged that claim to replicate the major hedge fund strategies, although some fund managers are sceptical of their benefits. Duncan Wood reports

The hedge fund industry has grown at an astounding pace. There are around 8,000 hedge funds currently in existence, managing anywhere between $1.5 trillion and $2 trillion in assets. The surge in new entrants has meant hedge funds are no longer the preserve of a few super-rich, in-the-know investors. On the other hand, there's a wide variety of funds pursuing an array of strategies - with some