NEW YORK - (Business Wire) Long/Short Equity fund managers avoided equity market volatility in October, finishing the month in neutral territory, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse. Dr. Drachman noted, “After record third quarter performance, Long/Short Equity hedge funds posted more muted returns in October; nevertheless, the sector outperformed most global equity markets, avoiding the drawdowns experienced across many equity market indices. Global Macro hedge funds appear to have posted gains last month, as models picked up on macro-economic trends despite market uncertainty. The Credit Suisse Long/Short Equity Replication Index (“AIR Long/Short Equity Index”) was down -0.01% (net) for the month, while the Credit Suisse Global Macro Replication Index (“AIR Global Macro Index”) finished up 0.63% (net) in the same period.”
AIR Indices seek to replicate the performance of major hedge fund strategies and enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index. The AIR platform also offers inverse indices that seek to approximate short exposure to the aggregate returns of the universe of Long/Short Equity and Global Macro hedge fund managers.
Performance for the AIR Global Macro and Long/Short Equity Indices (shown below) is calculated daily and shown net of a 1.15% per annum calculation fee. Performance, descriptions, statistics and downloadable price history can be found on the Credit Suisse Alternative Beta website, www.credit-suisse.com/alternativebeta.
| | | | | | YTD through |
| | | Oct-09 | | Sep-09 | | Sep-09 |
| AIR Global Macro (Net) | | 0.63% | | -0.18% | | 2.01% |
| Credit Suisse/Tremont Global Macro Hedge Fund Index | | N/A* | | N/A* | | 9.09% |
| AIR Long/Short Equity (Net) | | -0.01% | | 1.02% | | 10.52% |
| Credit Suisse/Tremont Long/Short Equity Hedge Fund Index | | N/A* | | N/A* | | 16.68% |
| S&P 500 TRI Index** | | -1.86% | | 3.73% | | 19.26% |
| Dow Jones World Index** | | -1.82% | | 4.42% | | 26.66% |
* October performance will be published November 16th on Bloomberg and online at www.hedgeindex.com
** Total Return Indices
Additional features of the AIR Long/Short Equity and Global Macro Indices include:
- AIR Indices seek to capture the risk/return characteristics of specific hedge fund sectors
- Indices are valued daily and are comprised of liquid, investable market factors that are selected and weighted using an objective and transparent rules-based methodology
- An algorithm determines the appropriate factors and weightings to employ in seeking to replicate the returns of specific hedge fund strategies
- Transparency via website (www.credit-suisse.com/alternativebeta) and pages on Bloomberg <AIRI>
Credit Suisse Alternative Capital, Inc. is a subsidiary of Credit Suisse and is headquartered at 11 Madison Avenue, New York, NY 10010-3629.
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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.
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.
This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof. No part of this material may be reproduced or retransmitted in any manner without the prior written permission of Credit Suisse.
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Credit Suisse
Tamsin Blue, 212-325-1863
Corporate Communications
tamsin.blue@credit-suisse.com
