Press Releases & Announcements       
Back to Press Release & Announcement Index

October 11, 2007

 
Media Release
 
New Credit Suisse/Tremont Hedge Fund Index research analyzes impact of past market turmoil on hedge funds.
Research finds that hedge funds are able to recover quickly following market turmoil.
 
New York, October 11, 2007 Credit Suisse Index Co., Inc., today released its latest industry research, Analyzing Past Market Turmoil and Outcome for Hedge Funds, which has found that hedge funds are able to recover quickly after market turmoil. The most recent research examines the effects of five crises on hedge funds and world financial markets, finding that hedge funds, if affected, were able to return to positive returns quicker than global equity or debt markets. Hedge funds, as exhibited by the Credit Suisse/Tremont Hedge Fund Index (“HEDG”), have shown the ability to recover quickly after market turmoil in the past, exhibiting trends of correlation in subsequent bull market runs and decorrelation at market downturns surrounding the event, according to the Credit Suisse Index Co., Inc. Even during the worst downturns, hedge funds were able to resume to positive returns quicker than global equity or debt markets.

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:

  1. The Hedge Fund Index (the “Broad Index”), an asset-weighted benchmark that measures hedge fund performance;
  2. 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
  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.

Information

Oliver Schupp, Credit Suisse, telephone 212 538 8179, oliver.schupp@credit-suisse.com
Meg Bode, Bode Associates, telephone 516 869 6610, meg@bodeassociates.com
Suzanne Fleming, Credit Suisse, telephone 212 325 7396, suzanne.fleming@credit-suisse.com

Credit Suisse
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 45,300 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 (CSR), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

In its asset management business, Credit Suisse offers products across the full spectrum of investment classes, ranging from equities, fixed income and multiple-asset class products, to alternative investments such as real estate, hedge funds, private equity and volatility management. Credit Suisse’s asset management business manages portfolios, mutual funds, and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals.  With offices focused on asset management in 18 countries, Credit Suisse’s asset management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

The asset management business of Credit Suisse is comprised of a number of legal entities around the world that are subject to distinct regulatory requirements; certain asset management products and services may not be available in all jurisdictions or to all client types.

# # # # #


© 1999-2014 Credit Suisse Hedge Index LLC. All rights reserved.Credit Suisse Hedge Fund Index was formerly known as Dow Jones Credit Suisse Hedge Fund Index from June 22, 2010 to September 15, 2013. Credit Suisse AllHedge Index was formerly known as Dow Jones Credit Suisse AllHedge Index from June 22, 2010 to September 15, 2013. Credit Suisse Blue Chip Hedge Fund Index was formerly known as Dow Jones Credit Suisse Blue Chip Hedge Fund Index from June 22, 2010 to September 15, 2013.