Asset manager IndexIQ, which specializes in trying to replicate expensive hedge fund strategies using low-cost indexing techniques, has turned its attention on high net worth investors and the separately managed accounts.
The company has introduced three new index-based separately managed account products: two replicate hedge funds-of-funds, and a third SMA that is an ETF-of-ETFs covering commodities.
IndexIQ already offers an alternative alpha mutual fund and has plans to license its strategies to the exchange-traded funds world as well. The IndexIQ SMAs have investment minimums of $1 million apiece.
The IQ Alternative Beta Portfolio uses multiple hedge fund investing styles including long/short equity, global macro, market-neutral, event-driven, fixed-income arbitrage and emerging markets to replicate broad-based hedge fund indexes including the CS/Tremont Blue Chip Index and the HFRX Global Hedge Fund Index.
The IQ Inverse Alternative Beta Portfolio seeks to replicate the inverse risk-adjusted returns characteristics of that same collective hedge fund universe, hedging against the performance of the CS/Tremont Blue Chip Index and the HFRX Global Hedge Fund Index.
The IQ Commodity Rotation Portfolio seeks to achieve long-term capital appreciation by rotating exposure to various commodities. Exposures are determined using a rules-based price momentum methodology that rotates through seven commodity exchange-traded funds.
The SMAs will be primarily distributed through Charles Schwab & Co.