The Consistency Index & Prevailing Indices' Formulas
No intent is made to:

Provide investment advice,

Recommend a specific fund or type of funds.

Predict future return, risk or vol.
The purpose of this article is to explain:

The purpose of the indices

The reasoning behind the indices

The formulas of each index
The Formulas for the 18 Indices are: Back to Table of Contents
Hedge Fund Consistency Index Series Formulas

The Hedge Fund Consistency Index (HFCI) for All Fund Categories. Index formula: ((return above 5% annualized return)/ Annualized Standard Deviation)+ (return above 5% return)/ Maximum Drawdown)+ (3 year annualized return above 5% return)/ Annualized Standard Deviation)+ (annualized above 5% return)/ Maximum Drawdown)) * ((# of months 36)/100)+1 .

Note: Maximum Drawdown and Standard Deviation are for the entire length of the track record.


The Hedge Fund Consistency Index (HFCI) for Funds that Employ Crypto Strategies. Same as above applied to only funds that employ Crypto strategies.

The Hedge Fund Consistency Index (HFCI) for Funds that Employ Low Vol Strategies. Same as above applied to only funds that employ low vol strategies.

The Hedge Fund Consistency Index (HFCI) for Funds that Employ High Vol Strategies. Same as above applied to only funds that employ high vol Strategies.

The Hedge Fund Consistency Index (HFCI10 Yr) for All Fund Categories for the last ten years for funds with at least 10year records. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Hedge Fund Consistency Index (HFCI10 Yr) for Funds that Employ Low Vol Strategies. Same as above applied to only funds that employ low vol strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Hedge Fund Consistency Index (HFCI10 Yr) for Funds that Employ High Vol Strategies Same as above applied to only funds that employ high vol Strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record
The Prevailing Return Index (PI) Formulas Back to Table of Contents

The Prevailing Return (PI) for All Fund Categories. Compound annual growth rate (CAGR) for the lifetime of the fund+ Last 3 Year’s CAGR

The Prevailing Return (PI) for that Employ Low Vol Strategies. Same as above applied to only funds that Employ low vol strategies.

The Prevailing Return (PI) for Funds that Employ High Vol Strategies. Same as above applied to only funds that employ high vol Strategies.

The Prevailing Return (PI10Yr) for All Fund Categories for only the last ten years and most recent three years for funds with at least 10year records. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Prevailing Return (PI10Yr) for that Employ Low Vol Strategies. Same as above applied to only funds that Employ low vol strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Prevailing Return (PI10Yr) for Funds that Employ High Vol Strategies. Same as above applied to only funds that employ high vol Strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.
The Prevailing Reward to Risk Index (PRR) Formulas Back to Table of Contents

The Prevailing Reward to Risk (PRR) for All Fund Categories. (The Compound annual growth rate (i.e.CAGR) of the lifetime of the fund+ Last 3 Years CAGR)/Max Drawdown

The Prevailing Reward to Risk (PRR) for that Employ Low Vol Strategies. Same as above applied to only funds that employ low vol strategies.

The Prevailing Reward to Risk (PRR) for Funds that Employ High Vol Strategies Same as above applied to only funds that employ high vol Strategies.

The Prevailing Reward to Risk (PRR10Yr) for All Fund Categories for only the last ten years and most recent three years for funds with at least 10year records. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Prevailing Reward to Risk (PRR10Yr) for that Employ Low Vol Strategies. Same as above applied to only funds that employ low vol strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.

The Prevailing Reward to Risk (PRR10Yr for Funds that Employ High Vol Strategies. Same as above applied to only funds that employ high vol Strategies. However, Maximum Drawdown and Standard Deviation calculations included are for the entire length of the track record.
Neither the Lower Vol or Higher Vol comparative screens are intended to reflect or predict risk or vol but may provide an alternative screen that may aid the initial selection process with regards to which funds may merit further investigation.
No intent is made to:

Provide investment advice,

Recommend a specific fund or type of funds.

Predict future risk or vol.
The purpose of this article is to explain:

The purpose of the indices

The reasoning behind the indices

The characteristics of each index
Past performance is not necessarily indicative of future results.