Patent ID: 7571130
Filing Date: 2009-08-04
Classification: G06Q

Abstract:
1. A method of constructing a hedging portfolio for actively managed exchange traded funds comprising the steps of: analyzing risk factors derived from the historical returns of an actively managed fund using a computer, constructing a hedging portfolio by selecting a set of securities that has substantially the same sensitivities to the risk factors derived from the historical returns of the actively managed fund using a computer, wherein the set of securities having substantially the same sensitivities to the risk factors derived from the historical returns of the actively managed fund comprise a hedging portfolio, and withholding the identities of the assets of the actively managed fund from an investor who trades shares of the actively managed fund, wherein the hedging portfolio does not reveal the assets of the actively managed fund portfolio, and wherein the returns of the hedging portfolio substantially track the returns of the actively managed exchange traded fund.