The Best and the Worst of It: Hedge Funds Break Records in October
New York, November 12, 2008 This October is poised to be the worst month in history for Fixed Income Arbitrage managers, while the Managed Futures sector posts its best return of the year.
The Fixed Income Arbitrage sector suffered significant losses to finish down an estimated 18% for the month. Prior to October, the worst month on record* for the Fixed Income Arbitrage sector occurred in October of 1998, when funds posted a negative 6.96% return. Many Fixed Income Arbitrage managers are still holding inventory in mortgage-backed securities and corporate bonds, which has materially impaired their ability to generate returns in this illiquid market environment.
Conversely, the Managed Futures sector capitalized on short equity, short commodities and long US dollar positions to generate its best monthly return this year and positioning it as one of the two positive performing sectors in October.
Early estimates indicate that the Credit Suisse/Tremont Hedge Fund Index was down approximately 5% in October, as extreme market volatility and extraordinary government intervention created a difficult trading environment. Estimates are based on 61% of assets reporting; final October performance will be reported November17th on Bloomberg and online at www.hedgeindex.com.
| Index || October 2008 || Year to Date** |
| Credit Suisse/Tremont Hedge Fund Index || -5.25 % || -9.86% |
| Convertible Arbitrage || -10.70% || -19.45% |
| Dedicated Short Bias || 8.75% || 3.40% |
| Emerging Markets || -15.36% || -18.07% |
| Equity Market Neutral || -0.96% || 1.67% |
| Event Driven || -2.99% || -9.31% |
| Fixed Income Arbitrage || -17.75% || -11.57% |
| Global Macro || -4.61% || -2.07% |
| Long/Short Equity || -7.24% || -13.28% |
| Managed Futures || 5.28% || 6.69% |
| Multi-Strategy || -8.09% || -12.63% |
Confirmed performance for the Credit Suisse/Tremont Hedge Fund Index and its ten sub-strategies is calculated monthly and is available at www.hedgeindex.com.
For a complete description of the Credit Suisse/Tremont Hedge Fund Index, please see the index rules available at www.hedgeindex.com.
Credit Suisse Tremont Index, LLC is the joint venture company of Credit Suisse Index Co., Inc., a subsidiary of Credit Suisse Co., Inc., and Tremont Group Holdings, Inc. Credit Suisse Tremont Index LLC is headquartered at 11 Madison Avenue, New York, NY 10010-3629.
* Since inception of the Credit Suisse/Tremont Hedge Fund Index in January 1994.
** Year to Date returns confirmed through September 30, 2008.
Credit Suisse Hedge Fund Index Investor Relations, telephone +1 212 538 0583, 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 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 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 private equity, real estate, hedge funds, 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 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 information contained in this document constitutes “Forward-Looking Statements” (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.