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February 10, 2009

Credit Suisse/Tremont Hedge Fund Index Estimated to Finish Up 0.80% for January

New York, February 10, 2009 -- Early estimates indicate that the Credit Suisse/Tremont Hedge Fund Index (“Broad Index”) will finish up approximately 0.80% in January, (based on 58% of assets reporting).

 

Faced with a barrage of weak corporate earnings and macro data in January, the economic stimulus package was at the top of the agenda for the incoming Obama administration. The US Federal Reserve acquired $53 billion of mortgage-backed securities in the month of January as it continued its efforts to shore up the credit markets, while the UK, Europe and Japan also implemented similar measures.

 

Relative Value (Convertible Arbitrage, Fixed Income Arbitrage, Equity Market Neutral) managers were generally up for the month, buoyed by improving credit markets and Central Bank interventions. After facing very significant technical and fundamental difficulties in 2008, Convertible Arbitrage managers overall had a strong month as appetite for corporate bonds improved and crossover buyers emerged. Event Driven managers saw the first signs of a rebound in six months – on the credit side, the liquid portion of high yield bonds moved because of a demand for yield, and some buyers emerged for illiquid parts of the market.

 

Many Global Macro managers started the year on a strong note, profiting from the steepening yield curves and strengthening of the US Dollar. Yield curves steepened in the US, Europe and Japan, while bond markets sold off during the month. The 10 year US Treasury Bond moved from 2.20% at the end of December to 2.82%, while the yield on the 2 year Treasury note surged to 0.95%. Currency volatility was significant, e.g., the British Pound’s greater than 10% move in the month. Overall, January presented an improving picture for hedge funds.

 

Strategy Estimates                                          

Index

Jan-09

2009

 

CS/Tremont Hedge Fund Index

0.80%

0.80%

Convertible Arbitrage

7.43%

7.43%

Dedicated Short Bias

2.02%

2.02%

Emerging Markets

0.66%

0.66%

Equity Market Neutral

1.91%

1.91%

Event Driven

0.65%

0.65%

     Distressed

1.03%

1.03%

     Event Driven Multi-Strategy

0.26%

0.26%

     Risk Arbitrage

0.44%

0.44%

Fixed Income Arbitrage

0.38%

0.38%

Global Macro

2.54%

2.54%

Long/Short Equity

-1.17%

-1.17%

Managed Futures

-0.53%

-0.53%

Multi-Strategy

1.59%

1.59%

MSCI World

-8.80%

-8.80%

Barclays Global Aggregate Bond Index

-3.27%

-3.27%

DJ AIG Commodities Index

-5.38%

-5.38%


Source: Bloomberg

 

Estimates are based on 58% of assets reporting; final January performance will be published February 17th on Bloomberg and online 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.

 

Contact Information

Credit Suisse Hedge Fund Index Investor Relations, telephone +1 212 538 0583, hfindices.ir@credit-suisse.com

 

Meg Bode, Bode Associates, tel 516 869 6610, meg@bodeassociates.com

 

Tamsin Chance, Corporate Communications, Credit Suisse, tel 212 325 1863, tamsin.chance@credit-suisse.com

 

 

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 50,000 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.

 

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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.

 

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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.

 

 

 

 


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