LONDON (HedgeWorld.com)–MSCI is adding more hedge funds to its investable index following a quarterly review, with the resulting small shifts in strategy distribution taking effect immediately.
The MSCI Hedge Invest Index will grow to 120 from 109 hedge funds, each of which offer weekly liquidity, an MSCI requirement for index inclusion. The underlying strategy target weightings show little change overall, with slightly higher allocations made to long bias, arbitrage, specialist credit ex illiquid and discretionary trading strategies.
The largest category in terms of numbers is the systematic trading process group, which has 23 underlying funds. The greater asset weighting in the investable index, though, is among long-bias managers, which are make up 22.38% of the assets.
The MSCI Hedge Invest Index was launched in 2003 with 64 underlying funds, and the last boost in constituent funds was in October 2004, when 13 funds were added to the index (see ). The index totaled 110 funds in October, but one hedge fund manager was dropped at the end of November, bringing the MSCI constituent list to 109, according to spokesman Patrick Linehan.
The investable index is built using managed accounts owned by Lyxor Asset Management. In turn, a number of financial offerings have been sold with performance linked to the index.
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