The hedge fund index quagmire

Investable hedge fund indexes are supposed to offer investors a transparent product that provides them with broad exposure to hedge fund performance. But not everyone is convinced they do their job properly.

Among the leading hedge fund performance index companies, Van Hedge Fund Advisors is the latest to move into the ‘investable’ hedge fund index business. The Nashville, Tennessee-based consultancy wants to take advantage of what its chairman, George Van, sees as the latest big trend in hedge fund investing.

“Investable hedge fund indexes are being pushed very hard to qualified investors and institutions,” says Van, “and I think they’ll become very big over time, just as mutual fund indexes have