Credit Suisse/Tremont Hedge Fund Index Is Down 1.48% In January

by Lorys Charalambous, Tax-News.com, Cyprus

20 February 2008

The Credit Suisse/Tremont Hedge Fund Index was recorded as being down 1.48% in January, according to Oliver Schupp, President of the Credit Suisse Index Co.

“Global market indices plunged In January, resulting in the worst monthly performance since 1990 for the Dow and the S&P 500, and the worst January on record for the NASDAQ. Lackluster demand for new issues has started to hit the pipeline for IPOs," explained Mr Schupp, continuing:

"The Federal Reserve cut rates twice in January, only a week apart, to bring the federal funds rate to 3.0%, far from the 5.45% rate in August, when the credit crunch and weakening economy first seemed to get the Fed's attention."

"Euro zone service growth slowed sharply in January from an already weak estimate. Euro zone government bonds rallied as analysts said the services data increased pressure on the European Central Bank to soften its hawkish stance on interest rates."

"Three of the big four economies (Germany, Spain, Italy and France) in the European Union showed business activity contracting, led mainly by financial services, while only France registered growth during the month,” Schupp added, concluding by:

“Despite this turbulent market environment, five out of ten hedge fund sectors ended January on a positive note.”

The Credit Suisse/Tremont Hedge Fund Index is comprised of 500 funds as of January 31, 2008.

The Index includes both open and closed funds located in the US and offshore, but does not include fund of funds.

In order to qualify for inclusion in the index selection universe, a fund must have a minimum of USD50m under management, a 12-month track record, and audited financial statements.

The Index is calculated as a total return index on a monthly basis, adjusted for asset in- and outflow, including a reselection according to the procedure outlined above on a quarterly basis.

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