NEW YORK (HedgeWorld.com)–The S&P Hedge Fund Index, launched in October 2002, now has approximately US$1 billion in assets.
This total investment comes from about two dozen index products, whether on the main index or strategy sub-indexes, offered by various firms. Some of these are for institutions and have been used, for example, by insurance companies. Others, in particular Rydex Capital Partners’ Sphinx, are for individual investors .
A new vehicle was added to this lineup by PlusFunds Group Inc., which announced a leveraged fund linked to the index. The product augments the investor’s initial equity with additional capital from either direct borrowing or the use of derivative transactions.
“The demand for a leveraged vehicle that tracks the S&P Hedge Fund Index stems from our investors’ increased comfort level with the low volatility profile of the index,” commented PlusFunds vice chairman Diego Winegardner, in a statement.