Patent ID: 8027911
Filing Date: 2011-09-27
Classification: G06Q

Abstract:
1. A method implemented by a computer system comprising the steps of: a. analyzing risk factors derived by the computer system from the historical returns of an actively managed fund; b. analyzing risk factors derived by the computer system from the historical returns of the hedging portfolio; c. comparing the factor sensitivities of an actively managed fund to the factor sensitivities of the hedging portfolio by the computer system; and d. verifying that the hedging portfolio has substantially the same sensitivities to the risk factors as the actively managed fund by the computer system; wherein the identities of the assets of the actively managed fund are withheld from an investor who uses the hedging portfolio to hedge an investment in 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.