First, and the preferred method, is to use the HFRX investable commingled funds as the hedge fund benchmark. If the HFRX method is chosen, I would recommend breaking out the portfolio’s hedge fund composite to its sub-strategies and then using the sub-strategy investable fund as the benchmark. Those objections are reasonable, but I believe that having a viable, investable product as a benchmark takes priority over the other issues. For example, an investor might assign a 200 basis point (bps) premium to the small-cap ETF, IWM, as the investable benchmark for its buyout portfolio. Probably NotIn Depth: On the Job – Building a Better BenchmarkFrozen Liquidity Problem Solved, Kinda, So Alts’ Popularity GrowsTags: Alternatives, Benchmark, Hedge Fund, Tony Waskiewicz