Markov Processes International (MPI), a provider of investment research, technology, analytics and indices for the global investment management industry, has added new target volatility indices to its growing roster of hedge fund indices.
MPI Hedge Fund Indices are designed to pair monthly hedge fund indices with daily tracker indices comprised of liquid securities that enable daily monitoring of hedge fund performance and risk. MPI will now provide target volatility indices for each tracker, enabling benchmarks to be tailored to a specific investor, allocation or product’s desired risk level.
The MPI Eurekahedge 50 Tracker Index (EHFI401), which is a daily tracker for the Eurekahedge 50 Index (EHFI400), is now available in 6 per cent and 8 per cent target volatility versions.
The MPI BEST 20 Tracker Index (MBEST20T), which is a daily tracker for the MPI Barclay Elite Systematic Traders Index (MPBEST20), is now available in 8 per cent and 10 per cent target volatility versions.
“Our hedge fund indices were developed to address a general dissatisfaction in the market with using traditional hedge fund benchmarks for manager or product selection,” says Rohtas Handa, EVP and Head of Institutional Solutions at MPI. “By removing many of the biases that plagued traditional indices, we’ve delivered a better benchmark for evaluating complex alternative products. Our target volatility tracker indices will now enable investors to further tailor their analysis to make an apples-to-apples comparison during manager selection.”
