Data provider With Intelligence has announced the launch of the Eurekahedge Institutional 200 Index (Bloomberg Ticker: EHFI687).
The firm writes that the Eurekahedge Institutional 200 Index was created to meet the need for a theoretical passive-methodology benchmark for large and institutional hedge fund allocators. The index is designed to address issues that large allocators face in the usage of hedge fund indices, the firm says.
Some of the issues faced in the usage of hedge fund indices include: fund suitability for institutional size requirements, stability in underlying constituents and strategy composition, transparency into underlying data and methodology, and biases in reporting, survivorship bias, instant history due to the self-reporting nature of such indices.
As a passive-methodology benchmark, a hypothetical index allocation to the Eurekahedge Institutional 200 Index would not require pre-requisite hedge fund expertise. The index constituents reflect the institutional investible universe to portray a passive and theoretically investable benchmark for large hedge fund portfolios and are sufficiently stable such that compositional changes could be mostly achieved by a large allocator with unfettered access in the same timeframe in which they flow through index results.
Elias Latsis, Chief Data Officer of With Intelligence says: “Eurekahedge, part of With Intelligence, is proud to announce this new institutional grade benchmark, the Eurekahedge Institutional 200 Index. We have seen increased demand for an index that focuses on large hedge fund portfolios, whilst also addressing historical challenges faced with providing a stable and bias-adjusted benchmark. This index has been designed to address these challenges and provide a transparent index methodology and composition.”