CSFB/Tremont Reports Gain In Its Hedge Fund Index For August

by Carla Johnson, Investors Offshore.com

17 September 2004

The CSFB/Tremont Hedge Fund Index gained a modest 0.14% for August 2004 in what continues to be a volatile period for the equity markets, the firm reported on Wednesday.

"August was a volatile month in both the US and European equity markets," confirmed Oliver Schupp, President of Credit Suisse First Boston Tremont Index LLC, adding: "Long/Short Equity managers ended largely flat for the month, trading on very low volumes, which is typical at the end of summer."

Equity Market Neutral managers were generally positive in August, noted Robert I. Schulman, Co-Chief Executive Officer of Tremont Capital Management, Inc, resulting in the highest return for the month from that sector.

“Some fundamental managers, who typically have a long value/short growth bias, posted gains on the short side of their portfolios as growth-driven equities underperformed value driven equities during the month,” observed Mr Schulman.

Meanwhile, the CSFB/Tremont Investable Hedge Fund Index is down an estimated 0.34% net for the month of August 2004.

"The Global Macro sector reported the lowest return for the month, down 1.43%. Returns from currency trading were generally flat to down,” continued Mr Schupp.

Emerging Markets on the other hand, performed well last month, gaining 2.07%, bringing the sector up 5.42% year-to-date.

As of August 1, 2004, the CSFB/Tremont Hedge Fund Index is comprised of 387 funds.

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