Halfway There: New Credit Suisse/Tremont Hedge Fund Index Research Paper Reviews Hedge Fund Performance Through the First Half of 2009
New York, July 22, 2009 Credit Suisse Tremont Index LLC today released a new research piece, 1H 2009 Hedge Fund Update: Halfway There, a review of how hedge funds have repositioned themselves in the first half of 2009 to generate positive returns for five out of the first six months of the year.
The report discusses how hedge funds, as measured by the Credit Suisse/Tremont Hedge Fund Index (“Broad Index”), have generated year-to-date returns of 7.2% through June 30, outperforming, with lower volatility, both key equity and bond indices. Some key takeaways from the report include:
n The Convertible Arbitrage, Emerging Markets, and Global Macro sectors have received increased attention as investors began to regain their appetite for risk and global markets rallied.
n Performance has improved across most sectors, with the bulk of returns for many strategies moving into positive territory for the year, with 80% of all funds reporting positive returns for the second quarter.
n Overall industry assets under management have dropped approximately $18 billion since the end of the first quarter of 2009; we estimate industry assets totaled $1.3 trillion as of June 30 - down from $1.5 trillion at the end of 2008.
n As of June 30, 2009, an estimated 9.6% of funds were classified as impaired, meaning they have either suspended redemptions, imposed gate provisions or sidepocketed assets.
n Six months after their worst drawdown on record, hedge funds appear to be demonstrating stronger performance than in some previous recovery periods, such as during the Asian Currency Crisis and the Tech Bubble Burst events. On average, it has taken hedge funds 13 months to recover from these market disruptions.
Credit Suisse Tremont Index LLC industry commentaries and publications are available in the Research section on www.hedgeindex.com. Click here to view the full report.
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
1. Source: Credit Suisse/Tremont Hedge Fund Index. All internally developed data is 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.
2. Data based on a sample set of funds reflective of the Credit Suisse/Tremont Hedge Fund Index as of June 30, 2009.
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