Eurekahedge 50 Target Volatility Index is based on Eurekahedge 50 Tracker Index (the based index). It is an investible index that is designed to represent the performance of top 50 successful hedge funds with a control target volatility level (currently at 8% annually).
The common problem to a well-diversified fund of hedge fund portfolio (like Eurekahedge 50) is that after balancing risk across all investment strategies, the portfolio provides a high Sharpe ratio but low expected returns. The Eurekahedge 50 Tracker Target Volatility Index boosts the performance of Eurekahedge 50 Tracker index by bringing up and control the portfolio risk at a modest level.
The Eurekahedge 50 Tracker Index is updated daily. The Eurekahedge 50 Index is updated monthly. The Eurekahedge 50 Index is based on the information provided by Eurekahedge Pty Ltd and may not include the most current month. Performance of these indices prior to their respective inception dates have been calculated retrospectively, based on simulated historical performance. For more information, please read our Index Performance Disclaimer.Source: Quantvest, Bloomberg
Good volatility control quality ensures that the risk of target volatility portfolio are properly managed.