NEW YORK (HedgeWorld.com)–Dow Jones & Co. plans to start publishing hedge fund indexes in November, providing daily and monthly returns for five investment strategies, as a basis for investable products.
The strategies are equity market neutral, convertible arbitrage, distressed securities, merger arbitrage and event driven. According to the company, these measures are style pure, and fund returns within each strategy are highly correlated with each other.
Critics charge that because of the heterogeneity of individual manager styles, hedge fund indexes in general are not meaningful benchmarks–style purity is one way of addressing such objections.
A group in Zurich Capital Markets originally developed the Dow Jones indexes. Recently, this management team brought out the business, which has US$1.3 billion in assets, and formed Lyra Capital LLC .
“Lyra Capital is the successor firm to Zurich Institutional Benchmarks Management LLC,” said Lyra chief Garry Crowder, in a statement. “Over the past three years, we have been a leader in the research and development of meaningful hedge fund structures for institutional clients.”