S&P to set up 40 fund hedge index

Standard & Poor's has put in place plans for an investable hedge fund index, allowing hedge fund tracker funds to be launched. The aim of the S&P Hedge Fund Index, which is to be launched in the third quarter, is to provide a transparent benchmark of the hedge fund asset class, according to the international ratings group, one that is broadly representative of the range of major strategies that hedge funds employ. The index will contain 40 funds divided into three sub-indices: arbitrage, event driven and tactical, which in turn represent a total of nine specific strategies. Thes...