Nataxis Unveils Hedge Fund Beta Replication Portfolios

October 2, 2008 ( - Natixis Global Associates has launched two hedge fund beta replication funds in conjunction with AlphaSimplex Group (ASG).

The funds will seek to capture the common risk factors or betas of a group of hedge funds by using futures and forwards contracts and other instruments and are designed to provide investors with the diversification benefits of hedge funds but with greater liquidity and transparency and at lower cost.

A news release said the funds are:

  • the ASG Global Alternatives Fund, a US ’40 Act fund, available only to U.S. investors; and
  • the ASG LASER Fund, a sub-fund of Natixis International Funds (Lux) I, a Luxembourg-domiciled   Undertakings for Collective Investment in Transferable Securities’ (UCITS).

ASG seeks to capture the betas using futures and forward contracts and other instruments, providing investors with long and short exposures to equity, interest rate, currency, and commodity markets around the world, according to the announcement.

“This is a good time for investors to consider including a hedge fund beta replication fund in their portfolio,” said Andrew Lo, portfolio manager of the two funds, in the news release. “Beta replication funds seek to offer the diversification benefits of hedge funds—access to a broader set off asset classes and low correlation to traditional asset classes—while avoiding some of the downsides of hedge funds such as illiquidity, limited capacity, and high fees.”

The ASG LASER Fund will be available immediately to non-US retail and institutional investors in Luxembourg and other jurisdictions where the fund has been authorized. The ASG Global Alternatives Fund will be available initially through institutional class shares.