Hedge Fund Replication At A Glance

Capabilities and Services

NERA experts have provided advice, analysis, and expert testimony in a range of actions where hedge fund replication techniques have been used. These have included:

  • Estimation of the counterfactual performance of a fund absent the resignation of a top manager, who was alleged to be in breach of an employment contract.
  • Counterfactual estimation of returns assuming that a programming error in the investment algorithm had not occurred.

NERA has assisted clients in a range of disputes involving hedge funds, including those involving the resignation of key personnel, the implementation of specific trading strategies, or the alleged mismarking of securities in portfolios. NERA’s securities experts have been involved in many disputes where issues related to the estimation of forgone performance and management fees have been analysed. A number of these projects have required using multi-factor models to estimate the counterfactual performance of hedge funds and then modelling what assets under management would have been.