Patent ID: 7676422

Claim:
A computer implemented method comprising: calculating, using a computer system, on a date prior to an adjustment effective date, a projected hedge fund weight for a hedge fund included in a hedge fund index, the projected hedge fund weight being based at least in part on preliminary information available for the hedge fund; determining, using the computer system, on a date prior to the adjustment effective date, an estimated weight adjustment for the hedge fund based at least in part on the calculated projected hedge fund weight; determining, using the computer system, an adjustment factor based on an estimation of error in the estimated weight adjustment, the estimation of error being based at least in part on performance information available from the hedge funds; determining, using the computer system, an actual weight adjustment for the hedge fund based on the estimated weight adjustment and the adjustment factor; and adjusting the weight for the hedge fund included in the hedge fund index on the adjustment effective date based at least in part on the determined actual weight adjustment.