New Italian Hedge Fund Index Launched

by Phillip Morton, Investors Offshore.com

28 March 2003

A new index, the first of its type in Italy, has been launched by MPS Alternative Investments and MondoHedge Spa in order to measure the Italian hedge fund market.p>

The main aim of the index is to provide a comparable and transparent measure of performance and risk in the Italian hedge fund sector. It covers 95% of the market, and will operate on both composite and sub-indices levels consisting of a general index of all Italian funds of funds, and two sub-indices.

At the first level there is the Specialist Index and the Multi Strategy Index. The latter is sub divided once again into High, Medium and Low Volatility Indices.

In a recent statement, MondoHedge detailed the available options as:

1. MH FdF Indice Generale: is the general index representing all Italian funds of hedge funds.

1.1 MH FdF Indice Multi Strategy: is the global index of multi-strategy funds of funds, made up of the following sub indices:

1.1.1 MH FdF Indice Low Volatility: includes the multi-strategy funds of hedge funds that target absolute returns with a volatility, similar to the bond market;

1.1.2 MH FdF Indice Medium Volatility: includes the multi-strategy funds of hedge funds that target absolute returns with a volatility level a little higher than the bond market;

1.1.3 MH FdF Indice High Volatility: includes the multi-strategy funds of hedge funds that have target absolute returns with a higher volatility compared to the bond market, but lower than the equity market.

1.2 MH FdF Indice Specialist is the global index of funds of funds focusing on specific strategies. At present it is made up of only one sub index:

1.2.1 MH FdF Indice Equity includes the multi-strategy funds of hedge funds that invest above all in long/short equity hedge funds.

Funds are calculated both asset and equal weighted, and all funds approved by the Bank of Italy and communicating results to MondoHedge are included in the index. Funds will also continue to be listed even once they have been rendered bankrupt or have closed their doors to new investors.

The index can be downloaded from the MondoHedge website (www.mondohedgeindex.com) and is available in both English and Italian.

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