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Exchange-Traded Innovation

Alan Miller wants to capitalize on wealthy investors’ frustration with hedge funds.

Alan Miller wants to capitalize on wealthy investors’ frustration with hedge funds by offering investments that boast transparency, liquidity and low cost: 75 basis points and a 5 percent performance fee.

Miller, 45, a former hedge fund manager and onetime CIO of New Star Asset Management, in February started London-based wealth management firm Spencer-Churchill Miller Private with Alexander Spencer-Churchill, the duke of Marlborough’s 26-year-old socialite nephew.

Miller declines to disclose his capital-raising target, but he has reportedly made more than £30 million ($48.98 million) over his 19-year career as a fund manager and invests much of his own fortune using the new firm’s strategy, which relies on actively managed allocations to a range of exchange-traded funds.

"ETFs are fantastic building blocks," Miller says. "By constructing our portfolios with ETFs, I can concentrate on the most important decision: being in the right markets."

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