Re:

Jeffrey,  just checking in.  We produced an index that we call the FACTOR INDEX that with 94% correlation replicates the Hedge Fund HFRI composite. Features include no carried interest like a Fund of Funds, daily liquidity, transparent pricing, potential long term cap gains vs. ordinary income.   FOF Hedge funds are generally 1% mgt fee and 10% carried interest. Factor Index charge is only 50-100bps per annum and no carried.

Right now Fund of Funds are one of the buyers of this product from us. They use it for excess liquidity until they put $ to work.

It can be done as investment or swap format. 

Maybe good for you or definitely to put in Abigail's portfolio.  What do you think?

Ed
Ed Spector, CIMA
Vice President
212 236 1660 (T)
212 236 1644 (F)

The information herein has been obtained from sources which we believe to be reliable, but we do not guarantee its accuracy or completeness. The information is for discussion purposes and neither the information nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or other financial instruments. All indications are subject to market conditions.

Merrill Lynch considers trade confirmations and monthly statements to be the official record of all transactions and balances.

Disclaimer:

CAUTION: electronic mail sent through the internet is not secure and could be intercepted by a third party. For your protection, avoid sending identifying information, such as account, Social Security, or card numbers to us or others. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically.

 

If you are not an intended recipient of this e-mail, please notify the sender, delete it and do not read, act upon, print, disclose, copy, retain or redistribute it. Click here for important additional terms relating to this e-mail.     http://www.ml.com/email_terms/

---