Eurekahedge and MPI launch new benchmark index tracking top 50 hedge funds
Eurekahedge has launched a new index, the Eurekahedge 50, created in partnership with Markov Processes International, which tracks the world top 50 hedge funds in terms of consistently attractive risk-adjusted returns.
The index was created to meet the demands of institutional hedge fund investors seeking a more selective benchmark reflective of diversified institutional quality hedge fund portfolios. The Eurekahedge 50 tracks the returns of the top hedge funds based on longevity, assets under management (AUM) and quality of risk-adjusted returns, taking into account stability and consistency. Boasting attractive performance coupled with a low downside deviation, the Eurekahedge 50 contains household names such as Paulson, BlueCrest, Cerberus, Fortress, Renaissance Technologies and other distinguished advisors from the hedge fund industry. With membership to the index limited to one fund per management company, the Eurekahedge 50 captures the best of the large hedge fund franchises.
"As investing in hedge funds continues to mature, institutional investors have been looking for a benchmark that is more reflective of their investment objectives as opposed to broad all-inclusive hedge fund indices. With a well-defined index construction criteria and attractive performance characteristics of the Eurekahedge 50, we feel we have created such an index and are excited to offer our clients access to this industry-leading hedge fund portfolio benchmark,” says Alexander Mearns, CEO, Eurekahedge.
The Eurekahedge 50 is equally weighted among its constituent funds and has been reconstructed by Eurekahedge since December 31, 2006 using a rules-based methodology, and avoiding survival and backfill biases. The current combined AUM of the 50 constituent funds exceeds USD110 billion.
"We are excited to join forces with Eurekahedge in designing a robust process that better captures the way institutional investors select and monitor hedge funds. MPI's deep expertise in quantitative due diligence and fund analysis provides great insights into hedge fund portfolio construction. In partnership with Eurekahedge, we helped build the first benchmark that aims to provide a reasonable proxy for a concentrated portfolio of institutional quality hedge funds,” says Michael Markov, Co-Founder and Chairman, MPI.
Based on this new benchmark, Quantvest Capital LLC, a US-based investment adviser, will create a daily tracker index which will be published on its website and has plans to launch an investible product that tracks the performance of the Eurekahedge 50 with a portfolio of liquid, exchange-traded securities.