Evaluation Associates Capital Markets Inc., Norwalk, Conn., unveiled an index of non-traditional money managers and plans to market a fund-of-funds based on the index.
Called the EACM 100, it is designed to represent composite performance of some significant sectors of non-traditional investment. Managers in the index are grouped into five major categories: relative value managers, such as long-short managers; event-driven managers, such as arbitrage or bankruptcy managers; equity hedge funds, which are U.S. and non-U.S. managers with a long market bias; global asset allocators, which can go long and short in world markets; and short sellers.
The index includes both private investment partnership managers, often called hedge funds, and managed futures-type of managers, said Patrick Moriarty, senior vice president for business development with EACM.
In order for the index to work, it must be investible, so managers in the index have to be open to new business.
Other requirements include: a designated investment strategy; annual audited returns with at least a one-year audited track record; and assets of at least $20 million.
Mr. Moriarty said Evaluation Associates Inc., parent to EACM, has about $250 million of its own money invested with managers in the index. He said he has seen interest from institutional investors, but none has signed on yet.
