Mon, Feb 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GlobeOp launches independent asset-weighted Hedge Fund Performance Index

Wednesday, May 09, 2012
Opalesque Industry Update – GlobeOp Financial Services will launch an independent, asset-weighted hedge fund performance index on May 15, 2012. The latest in a series of monthly GlobeOp hedge fund indices, it is transparent, consistent in underlying funds and data processing, and free from selection and survivorship bias.

“The GlobeOp Hedge Fund Performance Index offers a timely and true reflection of the aggregated return on capital invested in funds on our administration platform,” said Hans Hufschmid, chief executive officer, GlobeOp Financial Services. “The Index does not overstate exposure to, or the contribution of, any single strategy to aggregated hedge fund performance. Its correlation to many popular equity indices – such as the S&P 500 and the MSCI World Index – is therefore substantially lower than other widely followed hedge fund performance indices. Since its 2006 inception date, the GlobeOp Hedge Fund Performance Index has had a correlation of approximately 25% to 30% to these equity market indices. Fund managers and investors will find the early fund performance benchmarking useful. Both will gain comfort from the data consistency and independence, and from the preservation of individual client confidentiality.”

The GlobeOp Hedge Fund Performance Index will report on actual fund performance data independently collected from clients for whom GlobeOp provides monthly administration services.

• On the 10th business day of each month, the Performance Index will provide a flash estimate of the aggregate gross performance (net of management but not incentive fees) of funds administered by GlobeOp
• Interim and final values, both gross and net of management and incentive fees, will be provided in each of the two following months, respectively
• The GlobeOp Hedge Fund Performance Index inception date is January 1, 2006

Although individual fund data is anonymized by aggregation, Performance Index data will be based on the same reconciled fund data GlobeOp uses to calculate fund net asset values (NAVs). These rigorous processes are included in GlobeOp’s annual SOC 1 Type II examination. Online data charts can be segmented by gross and net performance, and by time periods – useful for investors or fund managers constructing their own performance benchmarks. GlobeOp’s total assets under administration represent approximately 10 percent of the estimated assets currently invested in the hedge fund sector. The investment strategies of the funds in the GlobeOp Indices span a representative industry sample.

Data for middle and back office clients who are not also fund administration clients is not included in any of the GlobeOp Indices, but is included in the company’s results announcement figures.

Commenting on the new index’s methodology, Tony Glickman, GlobeOp head of Client Solutions, said, “The Performance Index completes the picture of fund and investor behavior provided by the GlobeOp Hedge Fund Index family. Fund managers, asset allocators, fund investors and academics welcomed the GlobeOp Hedge Fund Performance Index in its trial phase, both as an early monthly benchmark and as independent data with a low correlation to many equity benchmark indices. Like our Capital Movement Index and Forward Redemption Indicator, the Performance Index is calculated by GlobeOp from monthly administration client data. Snapshots are taken at the same point in time each month and use a consistent methodology, eliminating the self-selection and self-reporting biases of many other indices. In addition, because data is reported within days of the business month-end, the delay factor inherent in some other indices is eliminated.”

Dr. Stuart Turnbull, Bauer Chair Professor, Bauer College of Business, University of Houston, TX , said, “The family of indices introduced by GlobeOp provides investors with an independent, transparent, timely and accurate measure of aggregate fund performance and investor activity with respect to subscriptions and redemptions. The independent nature of the GlobeOp Hedge Fund Performance Index avoids the ‘backfill’ bias caused by funds deciding whether or not to report their returns. This family of indices is a most welcome and needed addition to the tools used by analysts in studying hedge fund performance.”

From May 15, 2012 the GlobeOp Hedge Fund Performance Index will be available on www.globeopindex.com, or through a link on the homepage of www.globeop.com. Alert and RSS subscriber options are available on www.globeop.com. Index Twitter comments: #HFindex.

Press Release

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  3. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully

  4. Investing - Hedge funds hook shipping stocks grappling for recovery, Small cap hedge funds offer alternative for cannabis investing, Top stock-picking hedge funds love gaming, health care and media shares, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter[more]

    Hedge funds hook shipping stocks grappling for recovery From Hellenicshippingnews.com: Shipping stocks may still be in the doldrums in the view of many investors, but hedge funds have bet at least $675 million on signs of renewed buoyancy in the industry. Hedge funds made initial f

  5. Outlook - Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil, Quadratic Capital says markets to remain turbulent for some time[more]

    Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil From CNBC.com: While a lot of attention has been paid to retail volatility products that contributed to the recent sell-off, those securities are "just the tip of the iceberg," Eddie Perkin, chief equity i