The movement to create investable hedge fund indexes has certainly gathered steam over the last few years. So much so that debate is cropping up about how to deploy the strategy. It's fair to say that hedge fund investors have a lot of options these days. Should you go the passive route? Or the funds-of-funds route? I guess the increase in choice is a good sign. The one knock on the index approach is that at some point you diversify away all the risk, so you'll always end up with muted returns. For some, that might be the point. For others, the point is to take on an additional risk.  

For more:
- here's the Investment Dealers' Digest article

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