Asset management firms, including Merrill Lynch, Goldman Sachs and JPMorgan, have created a new type of product called hedge fund “clones,” or “synthetic” hedge funds, which employ hedge fund strategies without charging the typically high fees or imposing long lock-in periods or high investment minimums, The Wall Street Journal reports. Some are tied to hedge fund indexes, while others use more complex strategies.

Such funds are “a natural evolution in the market,” said Paul Brakke of State Street Global Advisors.

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