Settings
Light Theme
Dark Theme

#027: Andrew Beer – Cost Reduction Is the Purest Form of Alpha

#027: Andrew Beer – Cost Reduction Is the Purest Form of Alpha
Nov 3, 2023 · 1h 4m 1s

Shrouded in mystery and even more misunderstanding, hedge funds have always been very limited for the average investor. Whether for regulatory reasons or because of high capital requirements. But with...

show more
Shrouded in mystery and even more misunderstanding, hedge funds have always been very limited for the average investor. Whether for regulatory reasons or because of high capital requirements. But with the revolution started by ETFs, they are now available to the masses.

Today, with literally a few dozen dollars in your pocket, you can invest in the same things as hedge funds.The hedge fund industry is burdened with one big sin: high management costs – just like in classic investment funds.

This is probably the main source of their numerous failures. But something has been changing here for years, paradoxically partly thanks to the ongoing passive revolution (i.e.: index products). Management costs are falling, and according to Morningstar, the current average management cost among hedge funds is approximately 1.6% per year. Yes – it is still a lot if compared to passive stock ETFs, where the cost may be lower than 0.1% per year.

For several years, strategies implemented by hedge funds in the ETF package have been beginning to appear – the so-called managed futures ETFs. Here, management costs dropped below 1% per year.Today, I invite you to an interview with Andrew Beer – a man with 30 years of experience in the hedge fund industry. Some people even call him the “John Bogle of hedge funds” because he offers a very cheap (for this class of strategy) ETF.

For more please visit: https://systemtrader.show/027
show less
Information
Author Jacek Lempart
Website -
Tags
-

Looks like you don't have any active episode

Browse Spreaker Catalogue to discover great new content

Current

Looks like you don't have any episodes in your queue

Browse Spreaker Catalogue to discover great new content

Next Up

Episode Cover Episode Cover

It's so quiet here...

Time to discover new episodes!

Discover
Your Library
Search