FAQ's

How is the Credit Suisse Blue Chip Hedge Fund Index constructed?

The 60 member funds are determined in order of size as the largest six eligible funds by AUM in each of the ten strategies comprising the original index, but on the basis that once an eligible fund is included in a particular strategy, another eligible fund managed by the same or an affiliated investment manager will not be included in the same sector. If any sectors do not have six eligible funds, only the eligible funds in those strategies are included. In that case, the remaining member funds will be chosen in order of size as the largest remaining eligible funds by AUM in the other sectors until a total of 60 member funds have been determined, but on the basis that once a member fund is chosen from a particular strategy, a further member fund will not be chosen from that strategy until all other Sectors with remaining eligible funds have contributed to the selection process. Please see the Methodology section of this website or the Credit Suisse Blue Chip Hedge Fund Index Rules Document for additional eligibility definitions, rules and technical specifications.

How does the Credit Suisse Blue Chip Hedge Fund Index differ from the Credit Suisse Hedge Fund Index?

The Credit Suisse Blue Chip Hedge Fund Index is derived from the Credit Suisse Hedge Fund Index, but includes only open, or investable, funds. When defining open funds and other terms for eligibility, Credit Suisse Hedge Index LLC relies on information provided to it, its affiliates and any third party advised by it. The Credit Suisse Blue Chip Hedge Fund Index can therefore include funds that may generally be closed. The Credit Suisse Hedge Fund Index includes closed funds. Funds in the Credit Suisse Blue Chip Index are also selected solely from the set of funds that meet specified eligibility conditions.

How does the Credit Suisse Blue Chip Hedge Fund Index differ from similar hedge fund indexes on the market?

We believe this index is the industry's most representative asset-weighted and fully investable index. The 60 member funds are subject to transparent, rules-based selection criteria and represent all ten major hedge fund strategies. The rules-based construction methodology, by which all member funds are selected, seeks to limit subjectivity in the selection process.

Does the Credit Suisse Blue Chip Hedge Fund Index use net or gross data?

Index data is net of all fees. Further, the index is calculated net of a 0.07% per month index calculation fee.

Are funds of funds included in the Credit Suisse Blue Chip Hedge Fund Index?

Funds of funds are not included in the index.

Are funds that are closed included in the Credit Suisse Blue Chip Hedge Fund Index?

Funds that are generally closed for new investment may be included in the index.

Does the Credit Suisse Blue Chip Hedge Fund Index include hedge funds from all over the world, or does it include only U.S. hedge funds?

The index includes funds worldwide.

When does the Credit Suisse Blue Chip Hedge Fund Index begin?

The index commenced with a starting value of 100.00 as of August 1, 2003.

Does the Credit Suisse Blue Chip Hedge Fund Index include managed accounts?

No, managed accounts are excluded from the Credit Suisse Blue Chip Hedge Fund Index and the Credit Suisse Hedge Fund Index.

If a fund manager has both a U.S fund and an offshore fund, can both be included in the Credit Suisse Blue Chip Hedge Fund Index?

No. Only offshore funds are included in the index. However, should a manager have both a U.S. fund and an offshore fund in the Credit Suisse Hedge Fund Index, the sum of their respective assets is used to determine the weight of the offshore fund in the Credit Suisse Blue Chip Index .

How often will the Credit Suisse Blue Chip Hedge Fund Index be reconstituted?

The Credit Suisse Blue Chip Index will be reselected on a semiannual basis. The selection will be done from the eligible universe of candidates. Please see the Methodology section of this site or the Credit Suisse Blue Chip Index Rules Document for additional information.

Can a fund be removed from the Credit Suisse Blue Chip Hedge Fund Index for reasons other than changes in AUM?

A fund can be dropped from the Credit Suisse Blue Chip Hedge Fund Index at the semiannual rebalancing for reasons other than changes in AUM if any of the following occur:

  • The fund does not comply with the reporting requirements
  • The fund fails to comply with the rules relating to the provision of financial information
  • The fund ceases operation

How are new funds added to or removed from the Credit Suisse Blue Chip Hedge Fund Index?

The Credit Suisse Blue Chip Index is reselected semiannually, with member funds added and removed on a "going forward" basis only. Please see the Methodology section of this site or the Credit Suisse Blue Chip Index Rules Document for additional information.

How long a track record must a fund have to be included in the Credit Suisse Blue Chip Hedge Fund Index?

Funds must have a current audited financial statement and a minimum one-year track record to qualify for the Credit Suisse Blue Chip Index . However, funds with U.S. $500 million or more under management that have less than a one year track record can be included in the index provided that they can supply audited financials or comparable verification of performance and assets.

Will historic performance data be adjusted as new funds are added to the Credit Suisse Blue Chip Hedge Fund Index?

No. Any new funds added to the Credit Suisse Blue Chip Index will contribute on a "going-forward" basis only. The historic monthly figures will not be adjusted.

Will there be corrections to the Credit Suisse Blue Chip Hedge Fund Index?

Any adjustments will be made on a "going-forward" basis only, as is the typical practice with all other major hedge fund indexes

How soon after month end will the new Blue Chip Hedge Fund Index figures be released?

Index figures are typically released on the 15th of each month or the subsequent business day (should the 15th fall on a holiday or weekend). Index values may be calculated from estimated performance as reported by the managers. As a result, on each publication date, the most recent month's estimated rate of return and index value will be published along with the previous month’s confirmed rate of return.

Will the performance and asset figures of the funds denominated in currencies other than U.S. dollars be converted into U.S. dollars?

Yes. All figures are converted into U.S. dollars.

Is the Credit Suisse Blue Chip Hedge Fund Index affected by survivorship bias?

Most indexes are affected by some form of survivorship bias. In order to seek to reduce this effect, the Credit Suisse Blue Chip Hedge Fund Index does not remove funds in the process of liquidation, and therefore captures most of the potential negative performance before a fund ceases to operate. If a fund enters liquidation, its performance remains in the Credit Suisse Blue Chip Index until it fully liquidates, at which time it is removed because it no longer meets investability requirements. Please see the Methodology section of this site or the Credit Suisse Blue Chip Index Rules Document for additional information.

Are the relative sector weights in the Credit Suisse Blue Chip Hedge Fund Index the same as in the Credit Suisse Hedge Fund Index?

The Credit Suisse Blue Chip Hedge Fund Index was not designed with the goal of mimicking the relative sector weights of the broad Credit Suisse Hedge Fund Index. The sector weights can therefore differ substantially. The sector weights of each index are determined only by the AUM of member funds that comprise each index strategy.

Does the Credit Suisse Blue Chip Hedge Fund Index track the Credit Suisse Hedge Fund Index?

The Credit Suisse Blue Chip Hedge Fund Index was not designed to track the broader index. It was constructed as an investable, liquid, blue chip index with its own characteristics, and thus the performance of the two indexes may be significantly different.

Wouldn't an index comprised only of open funds underperform since all good funds are closed?

Credit Suisse AG, an affiliate of the index publisher Credit Suisse Hedge Index LLC, has relationships with a number of closed funds that have agreed to participate in the Credit Suisse Blue Chip Index regardless of their closed status. Further, empirical evidence suggests that closed funds do not necessarily outperform open funds.

Is the performance of the Credit Suisse Blue Chip Hedge Fund Index expected to be similar to that of the Credit Suisse Hedge Fund Index?

Despite its derivation from the broad Credit Suisse Hedge Fund Index, the sector weightings and member funds vary significantly from those of the broader index. Thus, the performance of the two indexes may be significantly different.


© 1999-2014 Credit Suisse Hedge Index LLC. All rights reserved.Credit Suisse Hedge Fund Index was formerly known as Dow Jones Credit Suisse Hedge Fund Index from June 22, 2010 to September 15, 2013. Credit Suisse AllHedge Index was formerly known as Dow Jones Credit Suisse AllHedge Index from June 22, 2010 to September 15, 2013. Credit Suisse Blue Chip Hedge Fund Index was formerly known as Dow Jones Credit Suisse Blue Chip Hedge Fund Index from June 22, 2010 to September 15, 2013.