Patent ID: 7752111

Claim:
A computer implemented method comprising: applying one or more sets of eligibility rules to a plurality of hedge funds to provide a set of eligible hedge funds that satisfy the applied sets of eligibility rules; selecting a subset of the eligible hedge funds that satisfy the applied eligibility rules to include in a hedge fund, calculating, using a computer system, weights associated with each of the plurality of hedge funds in the hedge fund index according to a set of weighting rules; storing in a memory the associated weights for each of the plurality of hedge funds; determining a capacity limit for a particular one of the plurality of hedge funds, the capacity limit being based at least in part on one or more of an amount that the particular hedge fund of the plurality of hedge funds allows to be invested in the particular one of the plurality of hedge funds and an amount that the particular hedge fund of the plurality of hedge funds allows to be redeemed from the particular one of the plurality of hedge funds; determining a change in monetary exposure of one or more structured products associated with the hedge fund index; and adjusting, using the computer system, an associated weight in the index for the particular one of the plurality of hedge funds based at least in part on the determined capacity limit for the particular one of the plurality of hedge-funds and the change in monetary exposure.