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S&P Unveils Hedge Fund Index, Returns

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NEW YORK (–Standard & Poor’s today began publishing data for its new hedge fund index, which was down 0.72% in October and up 1.86% year-to-date through October.

S&P breaks out data for three sub-indexes: arbitrage, event-driven and directional/tactical managers. Arbitrage managers in the index returned negative 1.01% in October, but were up 5.13% year-to-date through October. Event-driven managers returned 0.51% in October and are down 2.2% year-to-date. Directional/tactical managers returned a negative 1.63% in October and were up 2.7% year-to-date.

S&P will be publishing its hedge fund index values on a daily basis, a feature that hedge fund investors may find appealing. S&P signed a deal with Plus Funds Inc. to distribute index-linked funds. XL Capital Ltd., Hamilton, Bermuda, and Consulting Services Group LLC, Memphis, Tenn., are two of the firms working to do that. The XL venture is targeting insurance and reinsurance companies, while Consulting Services Group will be focusing on its clients, largely institutions.

The S&P data will be published on its web site and on Bloomberg and Reuters systems, according to S&P. The overall index was up 0.02% this month through Nov. 13. Arbitrage managers were down 0.02% this month, event-driven managers returned negative 0.11%, and directional/tactical managers returned 0.2%.

The index went live in October, with previous months’ data based on pro forma results.