The former London co-head at Long-Term Capital Management is launching the first hedge fund industry tracker fund.
Financial Times reported that Hans Hufschmid’s New York-based Altß aims to build a portfolio of investment designed to imitate the broad fund universe, with higher weightings for common hedge fund strategies, such as long/short equity.
Altß believes it can replicate the hedge fund industry by examining correlations between funds with similar strategies, across a database of 10,000 funds, while screening out poorly run funds that are likely to underperform.
The fund has begun investing $100m in capital has completed its first two rounds of investments.
Along with Hufschmid, Altß was founded by several other former GlobeOp executives.