Friday, 27 March 2015
Last updated 2 hours ago
Feb 14 2008 | 2:14pm ET
Morningstar is bringing its famous star ratings to the hedge fund industry. The Chicago investment research outfit today unveiled plans to begin rating the funds in its database, giving hedge fund investors the same five-star system that has become the gold standard of mutual fund ratings.
Hedge funds will be divided into 17 categories covering equity, debt, event-driven, arbitrage and global strategies, as well as multi-strategy funds. Funds of hedge funds will not be rated, as Morningstar has “not developed a subcategorization system to further define funds of funds.”
Morningstar said it expects about 1,800 of the 4,400 single-manager funds in its database will be rated. Funds must have a 38-month continuous track record to qualify for rating, and Morningstar will not rate funds in categories that have fewer than five eligible candidates.
Alongside the new ratings is a new group of indices based on Morningstar’s database. The Morningstar 1000 Hedge Fund Index will include the top 90% of eligible assets in the database. In addition the firm will publish subindices for each of its categories, as well as a fund of funds index.
“We believe the Morningstar Rating for hedge funds is the best starting point for judging a fund's past performance,” John Rekenthaler, vice president of research, said. “We want to make researching hedge funds a more transparent process, and our new ratings and indexes will allow qualified investors, advisors, and institutions to better evaluate and compare hedge funds to their peers.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…