Dow Jones Indexes and Credit Suisse have launched a new index that will track the “liquid, investible hedge fund universe” through the performance of managed accounts and other regulated fund structures.
Its creators say the Dow Jones Credit Suisse Core Hedge Fund Index is designed to reflect "the broadest representation of the liquid hedge fund universe with limited platform bias."
Oliver Schupp, president of Credit Suisse Index, said the index was launched in response to increasing investor demand for “more transparency and liquidity in the hedge fund universe” in the wake of the 2008 credit crisis.
The index will be rebalanced quarterly, is UCITS III compliant and includes 40 component funds across seven style-based sectors: event driven, long/short equity, global macro, emerging markets, managed futures, fixed-income arbitrage and convertible arbitrage. Index constituents are required to provide daily valuations and weekly, or better, liquidity.