IndexIQ Releases "Synthetic" Hedge Fund Products

March 22, 2007 ( - IndexIQ Inc. has come out with a family of products that replicate performance characteristics of high-performance hedge fund strategies, but for a lower fee.

According to a press release from the company, this initial family of “synthetic” hedge fund products is designed to be used as the basis for investable products for the retail investor, including the high net worth segment.

HedgeIQ was developed based on the firm’s proprietary research and development processes to create portfolios of liquid assets tied to equities, bonds, real estate, currencies and commodities that mirror the characteristics and statistically track the returns of specific hedge fund strategies.

“Our HedgeIQ suite of products democratizes the investment management industry by replicating the characteristics of sophisticated hedge fund strategies in a low-cost, risk managed, easy-to-understand manner,” said Adam Patti, Chief Executive Officer of IndexIQ, in the release.

HedgeIQ products replicate a variety of sophisticated hedge fund strategies including:

  • Absolute return strategies which seek to achieve positive returns in both up and down markets, with low volatility and low correlation with traditional benchmarks.
  • Long/short equity strategies which take both long and short position in equities in an effort to generate superior performance in both up and down markets by exploiting stock selection and market timing skills.
  • Emerging markets strategies which invest in equity and debt in emerging or developing countries, often unhedged, seeking to exploit inefficiencies in these markets to generate superior returns.

Additional information about the company and its products can be found .