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March 31, 2009

New Credit Suisse Research Paper Suggests the Time Could Be Right for Global Macro Hedge Funds

New York, March 31, 2009 Credit Suisse Liquid Alternatives, Alpha Strategies, has released a new research report exploring the Global Macro hedge fund strategy; specifically, how the strategy has performed through market dislocations, what factors have driven Global Macro hedge funds’ returns and why these factors may be beneficial in times of market stress and upheaval, as in the current market environment.

 

The Global Macro hedge fund strategy has the broadest investment scope and is typically the most flexible of all hedge fund strategies, may be able to provide positive performance when conditions driving individual markets are in transition. While certain other strategies may find it difficult to navigate market volatility, Global Macro funds have been able to adapt to the changing regimes, with returns rising during certain periods following market dislocations. This whitepaper discusses the strategy’s ability to seek to preserve capital through a range of conditions while seeking to profit from significant dislocations. Some key findings from the report include*:

 

n         Global Macro has been the top performing hedge fund strategy since the inception of the Credit Suisse/Tremont Hedge Fund Index in 1994, with an annualized total return of 12.57% (as of January 31, 2009)

 

n         Five factors have been instrumental in Global Macro’s outperformance: Flexibility and tactical asset allocation, top-down investment style and macroeconomic focus, global opportunity set, aversion to less liquid credit and other non-liquid investments and low “participation risk” in crowded trades

 

n         Global Macro hedge funds generated double-digit average returns in the first 12 months, following several previous market dislocation events, and maintained this double digit performance on an annualized basis over the three years following each dislocation

 

n         Global Macro hedge funds outperformed hedge funds in general by over 5% on average in the year following a market dislocation

 

* Past performance does not guarantee or indicate future results.

 

A complete version of this report is available in the Research section of the Credit Suisse/Tremont Hedge Fund Index website, www.hedgeindex.com. Click here to view the full report.

 

Information

Billie Clarricoats, Corporate Communications (UK), Credit Suisse, telephone + 44 20 7883 9760, billie.clarricoats@credit-suisse.com

Tamsin Chance, Corporate Communications (NY), Credit Suisse, telephone +1 212 325 1863, tamsin.chance@credit-suisse.com

 

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Asset Management

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 47,800 people. Credit Suisse is comprised of a number of legal entities around the world and is headquartered in Zurich. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, 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.

 

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain 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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