How Do Hedge Fund Clones Manage the Real World?

Several hedge fund replication products have been launched over the past three to four years. Consequently a substantial number of products have built up a sufficient track record for performance analysis. This survey investigates the performance of 20 replication funds or indexes over the period April-08 - May-09. All three well-known replication techniques are represented by different products. Besides classic performance analysis we investigate replication model risk, enabled by the discloser of backtested return data