The Gateway to Algorithmic and Automated Trading

Solactive launches new hedge fund replication index

First Published 8th September 2014

German-based provider of financial indices licenses equity index to Société Générale Corporate & Investment Banking.

Frankfurt - Solactive AG has launched an index in the hedge funds space, the Solactive Hedge Fund Holdings US Index (HEDGEUS,) which will be used as underlying by Société Générale Corporate & Investment Banking (SG CIB) for swaps, options, and certificates.

The goal of the HEDGEUS is to provide an exposure to the performance of a basket of stocks representative of the US listed equity holdings made by hedge funds. The index is composed of a basket of stocks listed on a US regulated exchange and invested by hedge funds, according to 13F Filings -- publically available documents that all hedge funds with more than $100 million in US equity investments are required to report to the SEC on a quarterly basis.

Stephane Mattatia, head of Global Equity Flow Engineering in Paris at SG CIB, said: "After the recently launched products on the Solactive Buyback Indices, we are very happy to provide further alternative alpha to our clients, which they can implement through diverse instruments."

Hedge fund indices have generated an increasing interest over the past few years, giving access via passive tools to active strategies. The HEDGEUS Index offers an innovative approach to capture the potential alpha generated by hedge funds in a systematic way.

Henning Kahre, head of Equity Indexing at Solactive, said: "We are pleased to have been given the opportunity to capitalise on our expertise and database of public filings from some of the most well-known investors. We continue to see a significant demand for hedge fund indices globally and, most recently, particularly from Europe."