S&P said in a news release that the additions to its S&P Hedge Fund Index should be implemented by May. The index currently has five such equity long/short offerings.
The S&P Equity Long/Short Index is designed to represent the range of hedge funds that rely on fundamentally driven, bottom-up research for long and short stock picks, and that attempt to create alpha on both sides of the market while limiting overall portfolio risk. The enhanced S&P Equity Long/Short Index includes 24 funds s creened for asset size, tenure, and style purity. The index includes two regional sub-indices: one with a U.S. focus and one with a Global-Ex-U.S. focus, each comprising 12 funds.
Like the other S&P Hedge Fund Indices, the S&P Equity Long/Short Index is investable through a managed account structure with constituent funds guaranteeing at least $100 million in new capacity to licensed products that will track the index. PlusFunds holds a license to develop investment products that are designed to replicate the index.
More information is at www.hedgefundindex.standardandpoors.com .