We've discussed the rise of innovative hedge fund products, mainly index-oriented products, that the likes of Goldman Sachs have rolled out. The concept is sound, and there seems to be enough demand to spark some additional innovation. Morgan Stanley for example has announced the launch of its altera product. (I'd like to talk to the product managers about the name, with the lower case a.) It aims to match the performance of hedge fund indexes, if not beat them, by offering customer contracts or even mutual funds that replicate Morgan's advanced strategies using derivatives and its proprietary quantitative applications. The benefits include better liquidity and more transparency. It all makes sense. I think the issue is the price point--if it is sold at a premium, I wonder if it will really take off. But there are many benefits, and the sales folks will have a lot to tout.  

For more:
- here's the release