WEST PALM BEACH, FL (www.hedgeco.net) – A growing number of hedge fund indexes continue to introduce lower minimum hedge funds to accommodate hedge fund investors who cannot afford the $1 millionrequired by SEC laws. According to new reports, Morgan Stanley Capital International has added a lower minimum hedge fund in its latest rebalancing effort last week. MSCI adjusted its investableindex in its quarterly rebalancing according to statements from the firm.
The Morgan Stanley Hedge fund Index was established in July 2003, and at that time the index had only 64 funds. Today the index has grown to 121 hedge funds, utilizing different trading strategies. Over the years, hedge funds management assets continue to grow in light of equity declines, prompting investors to seek alternative investments. MSCI now has the largest investable index according to published reports.
Investable hedge fund indexes have also grown in popularity because they are perceived to be cheaper in costs, generally such indexes charge about 1 percent fee for management in addition to the individual fund�s costs. Hedge Funds generally charge about 2 percent for annual management fee and about 20 percent for performance fee.
The next phase for hedge funds is to attract mainstream investors, as more Wall Street investors are looking for ways to get a piece of the hedge fund pie. The CSFB/Tremont Investable Hedge Fund Index has a total of 60 funds. Other hedge fund tracking firms have launched their own investable index as well. According to reports, Standard and Poor�s and Hedge Fund Research have also introduced a number of their own hedge fund investable indexes as well.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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