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August 14, 2008

New Credit Suisse/Tremont Hedge Fund Index Research Paper Explores Hedge Fund Performance During Market Downturns

New York, August 14, 2008 Credit Suisse Index Co. today released a new research piece, Seeking Returns in Turbulent Markets: The Case for Hedge Funds During Market Downturns, which posits that hedge funds in general have customarily exhibited trends of correlation in bull market runs and some de-correlation at market downturns. A comparison of the Credit Suisse/Tremont Broad Benchmark Index (HEDG), an asset-weighted broad benchmark of the hedge fund industry, to the MSCI World Index, a broad equity index, shows that the 12-month rolling correlation between the two has dropped from its peak of 0.97, in June 2006, to 0.61 in June 2008.  Between July 2007 and June 2008, HEDG increased by 4.09% compared to a decrease of 12.5% in the MSCI World Index and a decrease of 13% in the S&P500.

The report discusses the concept that certain hedge fund strategies have historically performed well or have mitigated losses while some strategies have been adversely impacted during periods of market dislocation. The report also discusses how past trends may be playing out in the current market environment. Some of the salient suggestions include:

 Parallels may be drawn between the current market downturn and the events of the Asian financial crisis and the Russian debt crisis that sparked the collapse of Long Term Capital Management which were both marked by dramatic increases in equity market volatility caused by a reduction of liquidity within the markets;

 Certain strategies have recently emerged wherein managers were able to manage losses; and

 Dominant return strategies have shifted over the course of previous market dislocations and there is no way to accurately predict which sectors will be able to capitalize on market events going forward, reinforcing the precept that diversification is fundamental when considering investing in hedge funds.

Credit Suisse Index Co., Inc., industry commentaries and publications are available on the News & Press/Research section of our website,

Credit Suisse
As one of the world's leading banks, Credit Suisse provides its clients with private banking, investment 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 49,000 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

Asset Management
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. 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 23 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.

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.

Credit Suisse Hedge Fund Index Investor Relations, telephone +1 212 538 0583,
Meg Bode, Bode Associates, telephone 516 869 6610,
Suzanne Fleming, Corporate Communications, Credit Suisse, telephone 212 325 7396,

© 1999-2017 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.