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ETFs copying hedge fund picks, but strategy not without risk 

February 24, 2014
Reuters

Small investors who have longed to benefit from the brains of top hedge fund managers can now purchase those same stock picks without paying hefty fees or tying up a large amount of money.

The catch is that Global X Funds and AlphaClone LLC’s exchange-traded funds are essentially mirroring top hedge fund holdings without the day-to-day hedging that is supposed to provide a cushion.

When certain top hedge managers buy a stock, New York-based Global X and San Francisco-based AlphaClone do, too, though with a lag that some critics say could be costly.
Still, returns from both funds last year far exceeded those of the hedge fund industry as a whole.

Read more: Reuters

 
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