MUNICH (HedgeWorld.com)–A German consulting firm, Talenthedge, this week launched its investable hedge fund index as part of an online offering that allows for the licensing of the index by institutional investors.
The Talenthedge International Hedge Fund Index will have its prices published online and will have an online shop for the purchase of index licenses. Founder Rene Friedrich is offering a one-month test period of the index for a flat rate fee, expecting institutional investors will be attracted to the index for the purposes of creating structured products for hedge index funds or index-tracking funds.
Mr. Friedrich is in talks with three institutions that are interested in establishing index-linked offerings in France, the United Kingdom and Germany. In each case, he said the initial product size is estimated to be about 10 million to 20 million euros (US$12 million to US$24 million). He hopes to finish two or more index licensing deals within the first three months of the launch.
Touted since August, the Talenthedge index has been delayed a number of times . According to a news release, the postponement was due to the stringent selection criteria used.
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“The aim of the index is to be a performance benchmark for funds of hedge funds,” said Mr. Friedrich, in a statement. “So maximum diversification was not the aim here, rather minimum diversification and a high level of risk control.”