Hedge funds mixed with managed future strategies are a useful way to diversify a portfolio over the long-term, according to Opalesque, an online alternative investment news service.

The hedge fund news provider has launched the Emanagers Database and Index series, which comprises three indices; the Emanagers Hedge Fund Index, the Emanagers CTA Index and the Emanagers Total Index, which is a combined total of the first two.

These indices have provided greater returns than the HRFI Fund Weighted Composite Index and the MSCI World Index, the service says.

Since January 2009, the Emanagers Total Index achieved returns of 60.3 per cent, compared to 25.9 per cent for the HFRI and 20 per cent for the MSCI.

During September, the Total Index lost 1.91 per cent but is up 0.34 per cent so far this year. The Total Index is a combination of 198 hedge funds and 94 managed futures funds.

Emanagers Hedge Funds Index dropped 5.32 per cent, compared to a drop of 4.85 per cent for the HRFI. This loss occurred between July and September this year. However since January 2009 it has returned 52.5 per cent compared to 25.9 per cent for the HFRI.

Emanagers CTA Index was the only index to increase in September by 1.07 per cent, returning 12.2 per cent year-to-date.

The Emanagers Total Index is based on 293 emerging hedge fund and managed futures fund managers. It focuses on firms younger than four years, with assets under management of less than $600 million since the firm’s inception.