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

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 will rotate holdings as dictated by quantitative investment formulas.

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