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This column originally appeared on Real Money Pro at 7:33 a.m. EDT on Oct. 16.

NEW YORK ( Real Money ) — Most recognize that hedge funds have outperformed the S&P 500 with less risk over the past two decades.

Do you want to perform like the big hedge funds? In fact, do you want to outperform them with less fees, lower transaction costs, immediate liquidity and more transparency?

If you answered yes to all these questions, I have found an interesting and recently minted exchange-traded fund that might be considered. It’s relatively illiquid, as it is not seasoned, but it’s a Kass Katch nonetheless.

AdvisorShares QAM Equity Hedge ETF (QEH ) is a relatively new ETF product that is designed to outperform, on a risk-adjusted basis, at least half of the hedge fund universe (defined by Hedge Fund Research ) by replicating the HFRI Equity Hedge (Total) Index. (Again for emphasis, since this ETF is so new, the vehicle is relatively illiquid, so if you plan to buy/sell the ETF, my advice would be to put in a limit order.)

The AdvisorShares QAM Equity Hedge ETF (QEH) seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents, in an effort to produce higher returns with lower risk than the S&P 500 Index over time. QEH is managed by Commerce Asset Management (Portfolio Manager).

The Portfolio Manager seeks to achieve the objective by employing an actively managed long/short equity strategy that attempts to gain global net equity exposures that approximate those of the universe of managers in the HFRI Equity Hedge Total Index. Additionally, the Portfolio Manager, utilizes advanced algorithms including Markov Processes International’s (MPI) proprietary and patented style analysis technique and associated algorithms, DSA (Dynamic Style Analysis), patented hedge fund analysis software, combined with the Portfolio Manager’s qualitative knowledge of the hedge fund investor community to develop investment strategies.

— How QEH Works , from AdvisorShares website

Here is a fact sheet on QEH, here is a profile of the composition of the QEH’s holdings, and here is a chart of QEH’s performance from inception.

On a back-tested basis and from inception this year, QEH has had a low tracking error and has outperformed the HFRI hedge fund universe.

I recently spent some time with the investment manager of this product, and I am confident that this trend of outperformance will likely continue.

At the time of publication, Kass and/or his funds had no positions in the stocks mentioned, although holdings can change at any time.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.