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Euro am Sonntag certification tip: Invest like a guru: With this index certificate you can bet on the best hedge funds | message


by Christian Ingerl, Euro am Sonntag

Hedge funds are notorious and famous at the same time. Money managers have always had the reputation of being exotic speculators. Because the industry enjoys great freedom of regulation, aggressive and risky strategies are often practiced. This in turn can lead to high profits and turn managers into true gurus.

The success does not come by chance, however, behind the strategies of the hedge funds usually enormous efforts. No expense or effort is spared to track down a promising investment. However, the complex decision-making process usually entails high fees and makes a direct investment in hedge funds relatively expensive for average investors.

But you can also get to know the industry much cheaper. In the US, the Securities and Exchange Commission (SEC) requires institutional investors with at least $ 100 million in US stocks to publish their positions on a quarterly basis. Investors don’t have to search through hundreds of SEC filings themselves to get the interesting deals. The index provider Solactive takes on this task.

Regular adjustment

The service provider launched the Solactive Guru Index eight years ago, which includes the top holdings of a select group of hedge funds. To do this, the relevant investment companies must meet certain criteria. For example, hedge funds that have a relatively high turnover rate are out of the question. Rather, the index focuses on a long-term investment style.

The strategy barometer currently contains around 50 components: from Alexion Pharmaceuticals from the USA to the Chinese online retailer to the US real estate portal Zillow. However, the index is not rigid. Whenever the new 13F filings are submitted to the US regulatory authority every three months, the composition is refreshed. A concept that pays off: since it was launched in May 2012, the Guru Index has increased by around 180 percent.

With a tracker certificate from UBS, investors can simply get the Solactive Guru Index into their custody account. The product (ISIN: DE 000 UBS 2GU 2) offers one-to-one participation in the development of the index, which also takes dividends into account when calculating it. The management fee is 1.2 percent per year, which is quite reasonable given the regular investment process. Because the paper is traded in US dollars, it is important to be aware of the exchange rate risk.


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