Managed Futures Gain in Popularity & Performance
New York, December 4, 2008 Managed Futures is one of only two positive performing sectors within the Credit Suisse Tremont Hedge Fund Index (“Broad Index”) this year, returning 11.99% year to date versus a loss of 15.54% for the Broad Index. The sector has grown from a weight of 3.5%of the Broad Index in January to 4.2% at the end of October and total assets under management for the sector are now estimated at $225.5 billion1, representing a 22% increase over the past year.
The Managed Futures sector has continued to deliver despite adverse market conditions, generating positive performance and bolstering investor confidence in the strategy. While the hedge fund industry as a whole has experienced net outflows for the year, the sector has seen positive inflows every month this year, even during months of negative performance.
However, market dislocation has led to an increased dispersion in the monthly returns posted by the sector’s constituent funds during the second half of the year. On average, there has been a 30% difference among the monthly returns of top and bottom performers within the Managed Futures sector between July and October, which is up from the 21% average difference in monthly fund performance for the sector in 2007.
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Source: Barclay Trading Group, Ltd. All data obtained from publicly available information and other third party sources are believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.
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