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Other companies are already offering investments that track their hedge fund indexes.
The Insider column in Business Day yesterday, about hedge fund indexes, misstated the affiliation of an author of a study on such indexes.
"Our indexes are very broad-based," said Robert Schulman, co-chief executive of Tremont Advisers, which helps operate the CSFB/Tremont Hedge Fund Indexes.
From 2009 to 2012, a simple, low-fee mix of 60 percent stocks and 40 percent bonds far outperformed hedge fund indexes.
A new study by Barclays Capital suggests that hedge fund indexes, because of flaws in they are compiled, may be overstating returns by as much as one to six percentage points a year.
Morgan Stanley Capital International, which is controlled by Morgan Stanley Dean Witter, is also planning to launch a series of hedge fund indexes by the end of the year.
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The Greenwich-Van Global Hedge Fund Index preliminarly reported returns of 0.10percentt in February.
Go to Press Release from Greenwich-Van Global Hedge Fund Index ».
Morgan Stanley Capital International, a unit of Morgan Stanley Dean Witter, is also planning a hedge fund index.
In some ways, funds that track a hedge fund index resemble the stock index funds offered by many mutual fund companies.
In September, Credit Suisse First Boston started an offshore fund based on its CSFB/Tremont Hedge Fund Index; Zurich Capital offers index-tracking funds to pensions and endowments.
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