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April 25, 2002

April 25, 2002


NEW YORK, NY, April 25, 2002 --- The devaluation of Lipper Convertibles LP and Lipper Offshore Convertibles LP has raised a number of questions by investors according to Roland Lorenzo, President and Chief Operating Officer of Credit Suisse First Boston Tremont Index LLC. 

 "We have fielded dozens of calls about the recent performance of the CSFB/Tremont Hedge Fund Index Convertible Arbitrage sector in February and March, 2002," said Mr. Lorenzo.  "Investors have noted that in February, the Convertible Arbitrage sector index showed its worst monthly performance in more than three years, losing over 3%, and that in March, the sector again showed a negative performance while other indices of convertible arbitrage sector performance showed positive returns.  We want to address those questions."

The philosophy of the CSFB/Tremont Hedge Fund Index is to present an accurate, objective and unbiased picture of the performance of the entire universe of capital invested in hedge funds.  The negative performance of the convertible arbitrage sector during February and March reflects the loss that a well-diversified hedge fund investor would have experienced as a result of the devaluations.  It has been suggested that the collapse of the Lipper funds should be excluded, because it is an extraordinary event and does not represent the majority of convertible arbitrage hedge funds.  However, CSFB/Tremont maintains that hedge fund collapses have occurred in the past, may occur again in the future, and cannot be overlooked.

"Investors cannot avoid such collapses by retroactive retraction of their investments. Therefore, it is imperative for an accurate index to account properly for the impact of these kinds of events on hedge fund investment performance.  To fail to do so would create survivorship bias," added Mr. Lorenzo.

On February 20, 2002, Lipper Convertibles LP, one of the largest convertible arbitrage hedge funds, reported that it was revising the value of its onshore fund downward by about 40% and its offshore fund by about 8%.  Both Lipper funds were components of the CSFB/Tremont Hedge Fund Index''''s convertible arbitrage sector, and because of their large size, they represented a proportionately large share of the CSFB/Tremont Convertible Arbitrage Sub-Index, and the negative performance had negative impact on the Index.

Although the Lipper revisions were retroactive to December 31, 2001, they were not announced until February 20, by which time the December and January performances of the CSFB/Tremont Hedge Fund Index already had been published.  The CSFB/Tremont Index has a longstanding, documented policy of not restating figures once they are published, and the first available opportunity to reflect Lipper''''s negative performance in the Index was in the February performance release.

On March 26,2002, Lipper further reported that the actual downward revision was being restated to 45% for the onshore fund and 10% for the offshore fund, and that both funds were being dissolved.  Because the CSFB/Tremont Hedge Fund Index had already published its February numbers, the first opportunity to reflect these revisions in the Index was for the month of March.

In conjunction with their impending dissolution, the Lipper funds have also stopped reporting monthly returns as of February.  In accordance with its policy of removing funds from the Index when performance numbers are not reported for two subsequent months, the two Lipper funds are being removed from the Index as of April 1, 2002.

A number of investors have asked what the CSFB/Tremont Convertible Arbitrage performance would have been without the effect of the two Lipper funds.  In response to their inquiries, we are providing the following unofficial, approximate estimates.  It must be emphasized, however, that the official performance numbers remain as previously published.

Month Hypothetical CSFB/Tremont Convertible Arbitrage Sector Performance (approx)
February 2002 +0.0%
March 2002 +0.4%

The above values are unofficial and do not reflect the actual performance of the CSFB/Tremont Hedge Fund Index. .  Actual performance values are available at

CSFB/Tremont invites your comments.  Please visit us online at, or send comments to

Credit Suisse First Boston Tremont Index LLC is the joint venture company of Credit Suisse First Boston Index Co., Inc., a subsidiary of Credit Suisse First Boston Inc., and Tremont Advisers, Inc.  The company''''s management team includes from CSFB, Paul Calello, Managing Director; and Roland Lorenzo, Managing Director, and from Tremont Advisers, Robert I. Schulman, President and Co-CEO.  Credit Suisse First Boston Tremont Index LLC is headquartered at 11 Madison Avenue, New York, NY 10010-3629.

Credit Suisse First Boston (CSFB) is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB''''s businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in over 89 locations across more than 37 countries on 6 continents. The Firm is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company.

Tremont Advisers, Inc. is a wholly owned subsidiary of Oppenheimer Acquisitions Corp., the parent company of OppenheimerFunds, Inc., one of the nation''''s most respected asset managers.  Tremont is a diversified holding company, which, through its subsidiaries, is engaged in three core businesses: advisory services, information & research, and investment products for the global alternative investment industry.  Tremont holds leadership positions in each of its specialty areas and advises on approximately $9 billion in alternative investment assets.  Through its London-based information and market intelligence unit, TASS Research, the firm provides data on the performance of more than 2,600 alternative investment managers and funds.  Tremont manages in excess of $1 billion in proprietary funds and has more than $200 million in insurance policies related to alternative investments.

Tremont''''s wholly owned subsidiaries, Tremont Partners, Inc., and Tremont Securities, Inc. are registered as investment advisers under the Investment Advisers Act of 1940 and as a registered broker/dealer under the Securities Exchange Act of 1934, respectively.  Tremont is headquartered in Rye, New York and has offices in Toronto, Bermuda and London.

Certain statements in this Press Release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The Companies assume no obligation to update these forward looking statements to reflect actual results, changes in assumption or changes in other factors affecting such forward looking statements.

PR Contact:    Meg Bode  (516) 869-6610

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