The objective of the Palomar SC HF Index™ is to produce an index that represents the risk and return of investable hedge fund investments in the structured credit area. The index aims to provide a monthly measure of the performance of the universe of open, investable structured credit hedge funds. The Palomar SC HF Index™ is calculated in two formats – as gross asset value and as net asset value.

Gross Asset Value Index (GAVI)
The Palomar SC HF GAVI™ is calculated using the (net) returns from the Underlying Funds (as reported by them) constituting the index before any costs related to the holding of the Underlying Funds. The purpose of the Palomar SC HF GAVI™ is to provide a benchmark for single manager hedge funds in the structured credit area.

Net Asset Value Index (NAVI)
The Palomar SC HF NAVI™ is based on the Palomar SC HF GAVI™ but is adjusted for the full running costs related to a fund of fund structure. Such costs include the costs of a typical fund of funds such as brokerage expenses, management and performance fee, administration and custody fees. The purpose of the Palomar SC HF NAVI™ is to provide a benchmark for multi manager hedge funds (fund of funds) in the structured credit area.

For a PDF of the Rules for Management and a Disclaimer, click here.