Credit Suisse/Tremont Hedge Fund Index Group Launches Markets Defender Basket based on Sector Invest Indices
The Credit Suisse/Tremont Hedge Fund Index Group announced today that it has released, on its website, the Markets Defender Basket, a basket of hedge fund sector indices, based on the Credit Suisse/Tremont Sector Invest Indices.
The Credit Suisse/Tremont family of hedge fund indices includes three separate indices:
1. The Hedge Fund Index, an asset-weighted benchmark that measures hedge fund performance;
2. The Blue Chip Investable Index, an investable index comprised of 60 funds across the ten style-based sectors in the broad index that are open to investment; and
3. The Sector Invest Indices, which provide investment access to any of the ten style-based sectors in the broad index on an individual basis.
Oliver Schupp, President of the Credit Suisse Index Co., Inc, said, “We are pleased to announce the launch of the Markets Defender Basket, based on the Credit Suisse/Tremont Sector Invest Indices. The basket, which is available on the website, will be a valuable tool for monitoring hedge fund strategies aiming at largely uncorrelated returns to the equity markets. The Markets Defender Basket is designed to provide exposure to a basket of Credit Suisse/Tremont Sector Invest Indices, primarily focused on equity market neutral hedge fund strategies.”
“The generally market neutral trading strategies comprising the Markets Defender Basket were selected to take advantage of a less bullish or outright bearish investment environment for equities,” said Mr. Schupp. “Rising inflation, consumer leverage and weakness in global housing markets are among the key risks for global equities going forward. Recent events in credit markets are adding to investor caution, and help position the Markets Defender Basket as a useful metric for hedge fund investments which aim to provide capital preservation, stable absolute returns and low volatility in a market environment of general negative sentiment.”
Also released on the website is the Global Growth Opportunities Basket, launched over two years ago, which is designed to provide exposure to a basket of Credit Suisse/Tremont Sector Invest Indices primarily focused on directionally-oriented hedge fund strategies.
Return for the Sector Invest Index Baskets*
Hypothetical historical portfolio performance for the Markets Defender Basket indicates that it is up an estimated 0.13% net for the month of June 2007, with the confirmed performance for May up 1.08%.*
The Credit Suisse/Tremont Global Growth Opportunities Basket is up an estimated 0.81% net for the month of June 2007. The confirmed performance for May is up 1.98%.
Performance for the ten Credit Suisse/Tremont Sector Invest Indices, the Credit Suisse/Tremont Global Growth Opportunities Basket, and the Credit Suisse/Tremont Markets Defender Basket are calculated monthly. Returns for the months of June, May, and year-to-date 2007 are listed at www.hedgeindex.com
in the tab “Sector Invest Indices”. The return is net of a 0.07% calculation fee.
About the Sector Invest Indices
The Credit Suisse/Tremont Sector Invest Indices are based on the broad Credit Suisse/Tremont Hedge Fund Index, which is the largest hedge fund index with approximately $567 billion in assets managed by 437 funds, as of June 30, 2007.
The funds in the Credit Suisse/Tremont Sector Invest Indices are selected from the funds included in the Credit Suisse/Tremont Hedge Fund Index, and comprise the largest funds that are open to investment and meet certain liquidity constraints in each of the 10 style-based sectors. The fund selection rules can be found on www.hedgeindex.com
and include the following criteria:
• The funds are selected from the Credit Suisse/Tremont Hedge Fund Index by an asset-based formula;
• The funds generally represent the largest eligible “open” funds in each of the ten sectors;
• The funds are determined by application of the construction rules; and
• Member funds must provide timely performance reporting, audited financials and offering memorandum review for inclusion
* Hypothetical historical portfolio performance for the Markets Defender Basket from October 1, 2004 to July 31, 2007 is shown for illustrative purposes only. Beginning August 1, 2007, the performance presented herein is the actual performance of the portfolio. Credit Suisse Tremont Index, LLC calculated the hypothetical returns by using the actual returns of the Credit Suisse/Tremont Sector Invest Indices for that period.
Oliver Schupp, Credit Suisse, telephone 212 538 8179, firstname.lastname@example.org
Meg Bode, Bode Associates, telephone 516 869 6610, email@example.com
Suzanne Fleming, Corporate Communications, Credit Suisse, telephone 212 325 7396, firstname.lastname@example.org
As one of the world's leading banks, Credit Suisse provides its clients with Investment Banking, Private Banking and Asset Management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 45,000 people. Credit Suisse's parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com
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