Lilliputian ETF Provider Plans Active Fund

Index Development Partners, a nascent exchange-traded funds provider, is bulking up to break into the market by preparing variations of actively managed investments, which it is calling "performance indexes," CBS MarketWatch reports.

Shares of IDP jumped to $1.50 from a meager four cents per share after hedge fund magnate Michael Steinhardt acquired at least 65% of the company. Unlike static indexes used as benchmarks in exchange-traded funds, the new ETFs performance indexes rotate holdings as dictated by quantitative investment formulas.