Dow Jones Credit Suisse Hedge Fund IndexSM
The Dow Jones Credit Suisse Hedge Fund IndexSM* was the industry's first—and remains the leading—asset-weighted hedge fund index.
Asset-weighting, as opposed to equal-weighting, provides a more accurate depiction of an investment in the asset class.
The flagship index of the Dow Jones Credit Suisse Hedge Fund IndexSM family is the Dow Jones Credit Suisse Hedge Fund IndexSM. The family also includes individual strategy indexes, which are collectively known as the Dow Jones Credit Suisse Hedge Fund Strategy IndexesSM.
The methodology utilized to create the Dow Jones Credit Suisse Hedge Fund IndexSM starts by defining the universe it is measuring.
The index universe is defined as funds with:
- A minimum of U.S. $50 million assets under management ("AUM"),
- A minimum one-year track record, and
- Current audited financial statements.
Funds within the Dow Jones Credit Suisse Hedge Fund IndexSM are separated into ten primary subcategories based on their investment strategy.
The Dow Jones Credit Suisse Hedge Fund IndexSM in all cases represents at least 85% of the AUM in each respective category of the index universe.
The methodology analyzes the percentage of assets invested in each subcategory and selects funds for the index based on those percentages,
matching the shape of the index to the shape of the universe. Fund weight caps may be applied to enhance diversification and limit concentration risk.
The index is calculated and rebalanced monthly. Funds are reselected on a quarterly basis as necessary.
The Dow Jones Credit Suisse Hedge Fund IndexSM uses a rules-based construction methodology, identifies its constituent funds,
and minimizes subjectivity in the index member selection process as a result of the rules-based method.
It aims to achieve maximum representation of the index universe. To minimize survivorship bias,
funds are not removed from the index until they are fully liquidated or fail to meet the financial reporting requirements.
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.
Please see the Dow Jones Credit Suisse Hedge Fund IndexSM Rules Document for additional rules, eligibility definitions and technical specifications.
*formerly known as the Credit Suisse/Tremont Hedge Fund Index since January 1, 1994.