A new breed of funds which claim to be able to copy the strategies of the $2 trillion (â¬1.3 trillion) hedge fund industry at far lower cost have performed poorly since the credit crisis began in August.
The products, often designed by academics and investment bankers, are based on the contention that most of hedge fundsâ performance comes not from manager skill or even luck, but from market returns, or trading strategies that can be replicated synthetically.
