Fee structures differ from assumptions in SG Trend Index, Corey Hoffstein notes

Fee structures differ from assumptions in SG Trend Index, Corey Hoffstein notes
Misconceptions about SG Trend Index fees

Corey Hoffstein challenges the common belief that most managers in the SG Trend Index operate under a 2 and 20 fee structure.

He explains that many do not follow this standard, which significantly alters the case for CTA replication and its "fee alpha." Hoffstein outlines four major factors to consider: management fees, performance fees, trading costs, and alpha leakage.

Earlier this year, Corey Hoffstein analyzed BlackRock’s launch of the iShares Macro AlphaBeta Active ETF, noting developments in return stacking products. He also reported on Winton’s filing for a U.S. equity and managed futures ETF, citing expansion in managed futures strategies in another recent announcement. Hoffstein continues to track product innovation and fee structures in the alternatives space.

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