Reuters columnist Christopher Swann says that hedge fund replication could make hedge fund-style strategies available to Joe Public - reducing retail investors' almost total dependence on stocks. Hedge fund replicators' fees are much lower (around 1 percent) and they don't lock up capital for long periods of time. However, the replicator funds are relatively new and it's hard to gauge how they will perform in the long term.
Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio