Kiwi Hedge Fund Index Up 12.4%

Oct 17 2008 | 11:06am ET

Think all hedge fund indices are taking a dive this year? It might be time to take a look a little further Down Under.

The Ernst & Young New Zealand Absolute Return Index, launched just over a year ago by New Zealand Absolute Return Association, is up 3.86% in September, while hedge funds worldwide were losing more than 6% on average.

While NZARA chairman Anthony Limbrick admits that the index is narrow, with initially just seven constituent managers, he says it represents a cross-section of the global industry, with global equities, trend-following, long volatility and commodities all represented.

Since the index started in July 2007 it has returned more than 25%, and its performance over the first nine months of this year is 12.4%.

“Considering most indices are struggling to post gains on a year-to-date basis, or are now substantially lower than where they were on Dec. 31, we are quite satisfied with the performance of the index,” Limbrick says.

The Ernst & Young New Zealand Absolute Return Index is based on the principle of simple averages. Each of the seven constituent managers submits an NZARA Average of the performances of all their funds open to new money. This collection of simple averages is compiled again as a simple average to create the index.

Ernst & Young compiles the index but is not a verification agent and does not guarantee the veracity of the performance numbers submitted by the constituent managers.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.