Some of the findings in Analyzing Past Market Turmoil and Outcome for Hedge Funds include the following:
- Hedge funds, as represented by the Credit Suisse/Tremont Hedge Fund Index, have tended to remain less volatile and have retained some positive performance throughout most market crises.
- In mid-to-late 1997, hedge funds exhibited decorrelation subsequent to the peak of the Asian Crisis, and the Credit Suisse/Tremont Hedge Fund Index returned 23.62% from July 1997 through June 1998.
- During the Russian Debt/ Long Term Capital Management crisis, many sectors suffered including Event Driven and Emerging Markets, while Equity Market Neutral and Long/Short Equity quickly rebounded, exhibiting that diversification of hedge fund strategies provided some protection.
- During the dot com bubble burst in mid 2000, hedge funds generally maintained flat returns in the face of drastic drops, however trends of strong decorrelation were exhibited as hedge funds quickly adapted to the crisis.
- After the 9/11 World Trade Center attacks, hedge funds maintained steady returns and hedged against the crisis.
- In the face of the credit crisis in early 2005, hedge funds again retained positive performance amidst declining government bonds, exhibiting again that, even during the worst downturns, hedge funds are able to resume positive returns quicker than global equity or debt markets.
Credit Suisse Index Co. industry commentaries and publications are available on the Research page in the News & Press section of our website, www.hedgeindex.com.
The Credit Suisse/Tremont family of hedge fund indices includes three separate indices:
- The Hedge Fund Index (the “Broad Index”), an asset-weighted benchmark that measures hedge fund performance;
- The Blue Chip Investable Index (“INVX”), an investable index comprised of 60 funds across the ten style-based sectors in the broad index that are open to investment; and
- 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, Credit Suisse, telephone 212 538 8179, firstname.lastname@example.org
Meg Bode, Bode Associates, telephone 516 869 6610, email@example.com
Suzanne Fleming, Credit Suisse, telephone 212 325 7396,
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