alternative asset: turnover

in hedge fund index, sometime it mention about fund turnover in the index, what does it exactly mean? Thanks.

That generally refers to the index being re-constituted as some hedge funds are eliminated from the index and others are added to the index. When hedge funds close they may be removed from a particular index and when a new hedge fund opens they may be added to the index. Different hedge fund indexes have different rules. Similar concept to portfolio turnover: selling one thing and buying another, but here you’re simply removing one manager and adding another.