NU PARADIGM INVESTMENT PARTNERS, LLC RELEASES WHITE PAPER:
Differentiating and Benchmarking Volatility-Based Investment Strategies Utilizing the CBOE Eurekahedge Volatility Indexes. Christopher DeMeo, CFA, FSA, Founding Partner
SUPPORTS UTILITY OF CBOE EUREKAHEDGE BENCHMARKS FOR VOLATILITY HEDGE FUNDS
Categorizing Volatility-Based Strategies Seen Key to Effectively Analyzing Hedge Funds’ Performance
Chicago Board of Options Exchange (CBOE) Announcement:
CHICAGO, IL and BONITA SPRINGS, FL – February 29, 2016 – CBOE has launched four new benchmark indexes in collaboration with Eurekahedge, a Singapore-based hedge fund research and data collection company, that measure the performance of hedge funds that employ volatility-based investment strategies.
The four new indexes, the first of their kind, were created to meet the demands of institutional hedge fund investors seeking benchmarks that measure the performance of distinct volatility-based strategies.
Hedge funds that invest in volatility-based strategies differ dramatically from one another and often have exposures on completely opposite ends of the volatility spectrum — some funds may be net long volatility, some net short and others neutral. CBOE Eurekahedge Volatility Indexes group specific funds into one of the four indexes that best correspond with a particular strategy.
The four CBOE Eurekahedge Volatility Indexes are:
- CBOE Eurekahedge Short Volatility Index (Bloomberg Ticker: EHFI450)
- CBOE Eurekahedge Long Volatility Index (Bloomberg Ticker: EHFI451)
- CBOE Eurekahedge Relative Value Volatility Index (Bloomberg Ticker: EHFI452)
- CBOE Eurekahedge Tail Risk Index (Bloomberg Ticker: EHFI453)