Londonacademic has launched an automated hedge fund system that they say is an alternative to pricey fund managers, according to published reports.
The program, FundCreator, designed by Professor Harry Kat of the Cass Business School at the City of London University with PhD student Helder Palaro, lets investors design futures trading strategies similar to hedge funds called synthetic funds that use 78 futures contracts to imitate various risk-return profiles. The simulator charges 0.36 percent a year and a USD5,250 set-up charge.
The minimum investment is about USD20 million due to the large size of most of the contracts. About 10 investors are testing the system.
Professor Kat says that his system outperformed 82 percent of funds of hedge funds.