Varengold Alternative Alpha indices
An index universe of evaluated, pre-selected managers is created from a Research pool of over 1000 asset managers worldwide; investment in the funds of managers included in the index must be possible through managed account structures. The index manager then undertakes systematic risk and allocation management on this basis in accordance with the allocation and risk parameters.
The index draws on over 16 years of Varengold experience in the fields of manager due diligence, risk monitoring and alternative alpha management.
The index covers the entire scope of the five defined sub-strategies. Target allocation focuses on managers whose trading volume and system characteristics enable them to trade rapidly and flexibly on the global markets.
The managers in the index are analysed on the basis of detailed criteria (including performance, risk exposures, style drift, draw downs, leverage, style and strategy mix) and processes, and pooled in a diversified and optimised portfolio in accordance with return and volatility targets. Strategic asset allocation, the manager selection process and an in-depth understanding of the individual strategies are the basis of Varengold Alternative Alpha Index stability.
