Tzur Management, an Israeli affiliate of fund administrator Orangefield Columbus, and the Gilboa Fund of Funds, which characterizes itself as the first fund of funds dedicated to Israeli hedge funds, have launched the Tzur Gilboa Israeli Hedge Fund Index (TGI), which tracks the performance of Israeli hedge funds.
As of September 2014, the index includes performance data for 49 Israeli hedge funds, and covers the period from January 2007 through the present, according to a spokesperson for the Tzur-Gilboa venture.
The companies define an Israeli hedge fund as “any open-ended fund registered, managed, or significantly invested in Israel. The fund must manage assets of at least NIS [new Israeli shekel] 10 million in order to be included,” officials say.
The index is calculated by “taking an equally-weighted average of all funds that meet the criteria at the time of calculation,” and includes performance data for 49 Israeli hedge funds, covering the period from January 2007 forward, the companies explain.
“Israeli hedge funds have returned 6.8% this year, through August 31st, which is slightly below the S&P figure of 8.4% and above the 4.7% return of the TA100 [the Tel Aviv 100 Index] for the same period,” according to a Tzur-Gilboa statement. “Israeli funds returned 15% and 19% for 2012 and 2013 respectively.”
The index includes data as far back as 2007 when the nine funds in operation returned 9%. Since inception, the index has returned 126%, significantly higher than the S&P and the TA100 which returned 41% and 37% respectively, officials say.
“TGI data clearly indicates significant Alpha being created by Israeli hedge funds, and highlights the expression of Israeli creativity and entrepreneurial spirit in the financial industry,” Eran Barak, a Gilboa FoF partner says in the statement.
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