Patent ID: 7739178

Claim:
A system, comprising: a computer memory configured to store a compound index that is based at least in part on: a plurality of component indices, wherein the plurality of component indices comprise: an international developed markets equity index; a United States large-cap equity index; and a United States small-cap equity index; and a plurality of weights, wherein each weight is associated with a respective one of the plurality of component indices; and a computer processor that is communicatively coupled to the memory and configured to: update the plurality of weights according to a regression analysis, wherein: the regression analysis is based at least in part on a respective set of returns associated with each of the plurality of component indices and with a hedge fund index, wherein: the hedge fund index is based at least in part on a plurality of hedge funds; and each of the plurality of hedge funds comprises long equities that are hedged with short sales of at least one of the following: equities; and equity options; and the plurality of weights are updated such that the compound index emulates the hedge fund index; determine a current compound index value based at least in part on the plurality of component indices and on the updated plurality of weights; and transmits the current compound index value to one or more clients.