BarCap launches hedge fund replication products

Barclays Capital has launched its flagship hedge fund replication products, the Long Barclays Alternatives replication (LBAR) Index and the Shortable Barclays Alternatives Replication (SBAR) Index.

LBAR closely tracks the global hedge fund industry, including funds that are no longer investable. In 2008 LBAR was one of the most accurate trackers of the alternatives industry. SBAR enables investors to short market exposure to the hedge fund universe.

This means clients can maintain the current value of illiquid positions or express a short view.

LBAR and SBAR are liquid, transparent indices providing linear and non-linear exposure to asset classes including equities, credit, rates, foreign exchange and commodities. They also can offer geographic and other market differences

The LBAR methodology was developed by the quantitative portfolio strategy team at Lehman Brothers, which is now part of Barclays Capital research. LBAR has been re-launched by Barclays Capital together with the newly developed SBAR.

The indices can be tailored. Other liquid replication solutions are expected to follow.