Well-documented biases of first-generation hedge fund indices prevent them from accurately representing hedge fund performance, while the inclusion of too many constituent funds often dilutes and negates information contained in hedge fund returns.

Our hedge fund indices reduce biases to provide more representative hedge fund benchmarks for institutional investors. Using our patented technology, we also develop a proxy tracker index for each benchmark. Each tracker index is comprised of liquid securities to enable daily assessment of hedge fund performance and risk. Here is our approach:

1. A better benchmark

• Consists of a select group of large institutional-quality hedge funds.
• Improves index stability due to a low attrition rate.
• Avoids strategy bias and single fund risk through improved diversification.
• Employs a rigorous and transparent index methodology to minimize survivorship and backfill biases.

2. Patented technology

• Identifies the factors that explain constituent hedge fund strategies.
• Captures changing fund exposures using our proprietary Dynamic Style Analysis model.
• Cross-validates selected factors through rigorous testing.

3. Daily tracker index

• Tracks the performance of the corresponding monthly hedge fund benchmark.
• Is comprised of liquid securities and calculated daily by independent index calculation agent.
• Enables intramonth performance and risk monitoring.