The alliance will serve as a platform to license and promote the hedge fund position replication approach to third parties seeking to provide access to alternative investment products.
The deal combines the ISE’s experience with AlphaClone’s disclosure-based hedge fund replication approach, called cloning.
ISE said that third-party licensees will be able to use its business development and marketing support to bring AlphaClone’s research and products to market.
ISE president and CEO Gary Katz said, "As we continue to expand our presence in indexes and exchange-traded products, we are looking for compelling opportunities to commit our resources to assist ETFs in coming to market. Our collaboration with AlphaClone is an excellent first initiative in this area."
The AlphaClone Alternative Alpha ETF is expected to launch in the second quarter of 2012.
