MSCI Barra

Overview Methodology Performance Subscribe to HFI HFI Subscriber Access Join the HFI Database HFI Participant Login Request Information

	Key Benefits
		Provides broad, detailed coverage
		Offers consistent and transparent hedge fund classification
		Creates a clearer picture of the hedge fund opportunity set

Learn More

	Fact Sheet
	Press Releases
	FAQ
	Investable Hedge Fund Indices

Home > Products > MSCI Products > Hedge Fund Indices > Methodology

Methodology

MSCI Hedge Fund Index Methodology

The MSCI Hedge Fund Classification Standard

MSCI Barra developed the MSCI Hedge Fund Classification Standard following extensive consultation with institutional investors in hedge funds:

MSCI Barra uses multiple characteristics to classify hedge funds
- Primary Characteristics - Investment Process, Asset Class, Geography
- Secondary Characteristics - Sector, Fixed Income Focus, Cap Size
- Example: Security Selection – Long Bias – Equity – Global Markets – North America
A fund is classified within the strategy where at least 80% of the fund capital is allocated
Due diligence process ensures funds are classified consistently
- Manager interview
- Review of marketing material & offering memorandum
- Evaluation of patterns in the data
The MSCI Hedge Fund Classification Committee consistently applies the MSCI Hedge Fund Classification Standard
- Makes the final independent determination for fund classification

MSCI Hedge Fund Index Structure

The structure of the MSCI Hedge Fund Indices begins at the strategy level and aggregates up to the MSCI Hedge Fund Composite Index
MSCI Barra Calculates over 190 hedge fund indices:
- Four levels of aggregation
- Equal weighted indices at all levels
- Asset weighted indices at two levels – process group and composite
- Three domicile families – onshore, offshore, all domicile
MSCI Hedge Fund Index Committee
- Responsible for editorial decisions affecting MSCI Hedge Fund Indices, including additions and deletions of constituents within indices


© 2008 MSCI Barra. All Rights Reserved \| Terms of Use and Privacy Policy \| Site Map \| 日本語