Hedge Fund Sources On-Line

    Hedge Fund Sources On Line Splash image

    If you are still interested in hedge funds, you can get some information on the Web, but most databases on individual fund (or fund of funds) performance and performance benchmarks are available only to subscribers and are extremely expensive. Listed below are hedge fund industry sources that are accessible for free, as well as two Web sites providing cautionary information on investing in hedge funds.

    Cautionary Information

    Hedge funds are not registered with the Securities and Exchange Commission, although funds of funds can be, even though they invest in individual unregistered hedge funds. The SEC provides extensive cautions about investing in hedge funds and funds of funds. You can view these cautions at the SEC Web site. Click on Investor Information, then Hedge Funds under Investor Tips.

    You can check to see if a hedge fund manager has a disciplinary history within the securities industry by searching NASD’s Central Registration Depository. Go to Regulation and then NASD BrokerCheck. In addition, you can read the NASD Investor Alert on funds of funds. Go to Investor Alerts, and look for the article entitled “Funds of Hedge Funds—Higher Costs and Risks for Higher Potential Returns.”

    Industry Information

    Hedge Fund Association
    Web site of an international association of hedge fund managers and service providers. Web site is primarily for professionals, but it does provide links to published articles and books about hedge funds.

    Hedge Fund Research, Inc.
    Industry source for hedge fund data and performance information. Most information is expensive and for subscribers only. However, daily information is provided on the HFRX indexes, which consist of eight single-strategy indexes, an asset-weighted Global Hedge Fund Index, and the HFRX Equal Weighted Strategies Index. Go to HFR Indices.

    Magnum Funds
    Web site of a hedge fund manager provides information on common hedge fund strategies and techniques.

    Web site of a hedge fund advisor. Provides information on hedge funds and hedge fund strategies, including data on performance characteristics and limitations of hedge funds. Also provides extensive current and historical information on their VAN indexes, which are benchmarks based on a representative sample of hedge fund returns. The database goes back to 1988.