Index description

The Index follows a discretionary qualitative as well as a quantitative strategy. The allocation process includes the macro economic environment. Quantitative strategy: The best 1% of hedge fund managers are screened using quantitative criteria such as sharpe ratio, past performance, volatility and correlation to stock and bond markets. Another criteria is that the funds must have an existing long-term track record. Analyses are made on periods of financial stress. Another criteria is that the fund manager must be personally invested into his/her fund. Then all the fund documents available are read and analyzed.
Qualitative strategy: fund managers’ interviews and company visits complement the due diligence process.