Hedge Fund Indexes: Benchmarking The Hedge Fund Marketplace
- Topics:
- Commercial Lending
- Source:
- Journal of Indexes
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Overview: Initially, hedge funds were the domain of high-net-worth individuals. However, in the latter half of the 1990s, large institutional investors discovered the charms of these investments. Endowments were first, followed by corporate and public pension plans. As more and more institutional investors entered the hedge fund arena, they demanded many of the investment parameters from their traditional long-only programs. Generally, with respect to external investment managers, institutional investors demand three things: A well-defined investment process, Transparency, and Relative returns. It is the last requirement, relative returns, that the article explores. Relative returns are one of the primary reasons for index construction. The paper begins by reviewing issues regarding the construction of hedge fund indexes. Next, it compares and contrasts the hedge fund indexes in existence. Last, it considers some issues regarding the selection of hedge fund indexes.
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Format: HTML | Date: Jul 2003 | Pages: 7



