Funds must submit performance data to the InvestHedge Database and have a 12-month track record, with no pro-forma data. The InvestHedge year runs from January to December.
For the New Fund of the Year Award we only require a seven-month minimum track record. For this award, funds have to have had 18 months performance up to December.
Most of the main award categories (apart from the ones where a specific asset size has been highlighted) require a minimum asset level of at least $100 million. The New Fund of the Year needs to have $50 million.
To win the nominations, all funds of hedge funds must have presented to InvestHedge a strategy allocation breakdown for each fund nominated. InvestHedge will have final say in which category a fund is nominated.
Any funds of funds that have not been listed in an issue of InvestHedge in 2010 up to and including December/January 2010/2011 and do not have a full 11-month track record in the InvestHedge database by 31 December 2010 will NOT be included in the nomination process for the 2010 InvestHedge Awards.
Nominations are decided by those funds that achieve the strongest Sharpe ratios over 12 or 60 months (depending on the category), as long as they also beat the median returns in their relevant peer groups. The eventual winners will be those funds of funds that achieve the best returns, as long as they also achieve Sharpe ratios within 25% of the best of the nominees.
InvestHedge now has a High Water Mark criterion: a fund has to be within 10% of its High Water Mark.
The criteria for the Group of the Year Award will be based on various quantitative factors, including weighted average Sharpe ratio across the product range; outperformance of the InvestHedge medians weighted by assets; as well as the growth of assets under management by both absolute amount and in percentage terms.
To be considered for Group of the Year, a group must have at least three nominations (in the one year category) and $2bn in assets under management.