Hedge Funds

The MSCI Hedge Invest Indices are designed to be investable and to reflect the overall structure and composition of the hedge fund universe. The composite-level MSCI Hedge Invest Index includes funds from a wide range of hedge fund investment strategies available on a third party platform. The MSCI Hedge Invest Index is subdivided into eight strategy-level indices that are based on the following defined investment processes:

Systematic Trading	Equity Non-Directional
Long Bias	Event-Driven and Merger Arbitrage
Discretionary Trading	Convertible and Equity Arbitrage
Variable Bias	Fixed Income

Each investable hedge fund index contains funds with weekly liquidity, which can be used as the basis for tradable and liquid investment products. The MSCI Hedge Invest Indices are constructed from eligible funds from the Lyxor platform of hedge funds according to the MSCI Investable Hedge Fund Index Methodology. Learn more about MSCI Hedge Invest Indices.

To run a successful hedge fund, the manager must design and execute a strategy with strong, sustainable returns. An accurate understanding of the potential for loss is an important part of the process. A hedge fund also needs to demonstrate to its investors that the fund's risk control practices are sophisticated and credible and must communicate these sound risk practices in a language investors can understand. As the industry leader with a reputation for analytical rigor, Barra provides the risk products required by hedge funds.

The Multiple-Horizon Equity Model - Short-Term is MSCI Barra's fundamental risk model constructed for equity hedge fund managers and other short-term institutional investors. Calibrated for portfolio managers who turn positions in one to six months, the Multiple-Horizon Equity Model applies daily factor returns to Barra's proven equity model factor structure, delivering a more responsive and accurate risk forecast. Available via the Barra Aegis System and through flat-file subscriptions, the Short-Term version of the Multiple-Horizon Equity Model reacts quickly to volatility events and changing market conditions, allowing hedge fund managers to more precisely identify risks. Learn more about the Multiple-Horizon Equity Model.

The Barra Aegis System is Barra's portfolio management suite for hedge funds with exposure to straight equities only. The Aegis system is designed for quantitative hedge fund shops that want a complete portfolio management system to help optimize portfolios, evaluate potential trades, attribute performance to portfolio decisions, and manage portfolio risk. Learn more about the Barra Aegis System.

Many hedge fund strategies require more flexibility and customization to effectively manage complex strategies. Barra flat-file subscriptions can be fully integrated into the investment process, providing the building blocks of a Barra model, including factor returns series, asset factor exposures and the factor covariance matrix. Statistical arbitrage managers and other managers employing quantitative equities strategies draw on the market information provided by Barra's factor models to enhance the research and alpha construction processes. Learn more about Barra risk models.

BarraOne is a web-based multi-asset class product well-suited for hedge fund managers who need a risk monitoring and reporting system. Intuitive and flexible, the BarraOne application allows managers to investigate the sources of risk along any dimension, and translate that risk analysis into the language of each portfolio's own investment process. As a hosted application, BarraOne requires no client data maintenance or special software other than a standard browser. Learn more about BarraOne.

The MSCI Hedge Fund Indices provide qualified investors with the opportunity to better understand the hedge fund universe and the performance and risk of various strategies. The indices facilitate detailed performance measurement and attribution due to their flexible and transparent design. Superior peer group comparison and analysis is possible, as is hedge fund research and selection.

There are currently 190+ MSCI Hedge Fund Indices based on the MSCI Hedge Fund Classification Standard. The MSCI Hedge Fund Classification Standard consistently uses the investment process as the dominant characteristic to classify funds and define indices. It also offers several levels of index detail, allowing for a more accurate definition of peer groups. The MSCI Hedge Fund Database currently contains over 3,600 single hedge funds. Learn more about the MSCI Hedge Fund Indices & Database.