S&P suspends Hedge Fund Index
Standard & Poor's said it will no longer publish its four-year old index, highlighting turmoil relating to Refco.
NEW YORK (CNNMoney.com) -- Standard & Poor's said it will no longer publish its managed account-based Hedge Fund Index as of July 1, 2006.
"Due to the diminishing number of managed accounts and their distribution in the index, the S&P HFI will not be representative of the broad range of strategies that hedge funds employ and therefore will no longer be published," S&P said in a statement.
The move highlights the fallout from the meltdown of commodity broker Refco Inc. last year, according to the Wall Street Journal.
PlusFunds Group Inc., the operator that compiled the data for the index and had close ties to Refco, said it intends to go out of business by the end of July, the Journal said. Refco filed for bankruptcy protection Oct. 17.
The Hedge Fund Index, which launched in October 2002, tracked the daily performance of nine different hedging strategies, measured by results from about 40 hedge funds. The index has seen more than a dozen deletions of constituent funds since the start of this year, according to the paper.
Related: Refco unit ordered to pay $124 million.