A lot of banks, notably Merrill Lynch, have been rushing to offer passive hedge fund products, aiming to tap perceived demand for lower-priced products. Most of these products are structured as index-like derivatives that trade over the counter. So Stonebrook Structured Products is convinced it has a novel idea with its upcoming Stonebrook Alternative Beta Fund. It expects to have at least $10 million under management within 10 years, according to ii.com. Stonebrook aims to replicate the "alternative beta" portion of returns from the Hedge Fund Research's HRFI Weighted Composite Index by investing in liquid financial instruments, including futures and securities. It's touting greater liquidity and greater transparency as well as lower costs, management fees of about 100 basis points on an institutional account with no performance fee.  

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- here's the article from ii.com