Hedge Funds vs. Alternative Risk Premia

Alternative risk premia (ARP) are designed to provide low-cost exposures long–short often embedded in hedge fund returns. This article describes the performance of ARP market form bank-provided total return swaps, which investable strategies that after-cost access ARP. Over 2010–20 period, many these provided significantly positive In addition, explain a high fraction returns on indexes, especially for quantitative strategies, along with traditional factors. Finally, we find and factors largely eat away index