Jeffrey S. Cohen and Randy P. Siller, partners at Siller & Cohen in Rye Brook, N.Y. (one of the top advisor teams at Lincoln Financial Advisors), both agree that any strategy recommended for a client would have to be based on their situation and goals. "But in general, this may potentially favor a situation where a $1 million to $10 million client is disillusioned with active management and might be looking for a low-fee approach. For clients over $10 million, you can buy the actual positions of the fund and therefore save the costs of the index and the overlaying management fee, so it might not be a good fit for those high-net-worth clients willing to employ that strategy."
However, Battaglia notes that, "The hedge fund arena is the widest area of opportunity for someone with some brains who can replicate some of these strategies and do it for less cost. If someone could come in and offer similar types of volatility and cut the costs way, way down, they'd look like a genius."