Key Takeaways
- • Standard & Poor's launched the S&P Hedge Fund Index, comprising 40 funds across nine hedge fund strategies grouped into three style categories: Arbitrage, Event-Driven and Directional/Tactical.
- • The index is equal weighted by design, which S&P says avoids over-representation of strategies that are in favor at any given time.
- • Daily index and sub-index values are calculated and published, giving investors transparency into how market events affect hedge funds overall or each style category.
- • Data is available free on spglobal.com, with Reuters and Bloomberg distribution announced as forthcoming.
- • PlusFunds has been licensed to develop investment products that replicate the index.
Summary
Standard & Poor's, the financial research, ratings and indices group, has launched the S&P Hedge Fund Index along with three style sub-indices. The benchmark tracks 40 funds spanning nine distinct hedge fund investment strategies, which are grouped into three broad style categories: Arbitrage, Event-Driven and Directional/Tactical.
S&P describes the index as "designed to be investable and representative of the broad-based investment experience of the hedge fund marketplace." It is equal weighted to ensure balanced representation across hedge fund approaches and to avoid over-representation of strategies that are in favor at the time, according to the company.
The index and its sub-indices are calculated daily. S&P says this provides a high level of transparency and allows investors to track the impact of specific market events on the hedge fund asset class as a whole or on each of the three style categories.
S&P is making the data available to all investors through its website, www.spglobal.com. S&P Hedge Fund Index data will also soon be available on Reuters and Bloomberg. The index has been licensed to PlusFunds for the development of investment products that replicate its performance. Further details on the index's structure, design and constituents are available on the S&P website.
Standard & Poor's is part of The McGraw-Hill Companies, a global information services provider founded in 1888 with more than 350 offices in 33 countries. The parent reported 2001 sales of US$4.6 billion.
S&P describes the index as "designed to be investable and representative of the broad-based investment experience of the hedge fund marketplace." It is equal weighted to ensure balanced representation across hedge fund approaches and to avoid over-representation of strategies that are in favor at the time, according to the company.
The index and its sub-indices are calculated daily. S&P says this provides a high level of transparency and allows investors to track the impact of specific market events on the hedge fund asset class as a whole or on each of the three style categories.
S&P is making the data available to all investors through its website, www.spglobal.com. S&P Hedge Fund Index data will also soon be available on Reuters and Bloomberg. The index has been licensed to PlusFunds for the development of investment products that replicate its performance. Further details on the index's structure, design and constituents are available on the S&P website.
Standard & Poor's is part of The McGraw-Hill Companies, a global information services provider founded in 1888 with more than 350 offices in 33 countries. The parent reported 2001 sales of US$4.6 billion.
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