Mount Lucas Management launched the Global Markets Strategy fund, a synthetic hedge fund designed to provide hedge fund returns without actually investing in hedge funds. Instead, it invests in futures on market indexes Mount Lucas developed to cover the typical components of hedge funds — equities, global bonds, currencies and commodities — but with more liquidity, better transparency and lower fees, said Tim Rudderow, Mount Lucas president.
"This is a challenge to the way the hedge fund industry does business – on fees, investment strategy and source of returns,” Mr. Rudderow said.