Credit Suisse Private Banking Launches Funds Of Hedge Funds

by Caroline Maxwell, Investors Offshore.com

11 July 2001

Credit Suisse Private Banking recently announced the launch of two funds of hedge fund units in reponse to the growing investor demand for such products. The units, which were launched at the end of last month, are baskets of around twenty different hedge funds, and have been chosen and put together by Swiss based fund of funds manager RMF Group.

Although CSPB has a large proportion of Asian clients, David Blumer, a director at the private bank was quick to scotch rumours that the units were specifically aimed at these clients. However, the products are not open-ended, and although they are currently still open to investors, the minimum investment is one unit, which is the equivalent of $10,000.

Obviously, the hedge funds within the units will operate using a combination of the strategies open to the less regulated hedge fund managers. However, Mr Blumer stressed that the overall aim of the Best International Managers Balanced Strategy and Best International Managers Growth Strategy funds was a market neutral investment with absolute returns.

'I think investors have been hit significantly by market events,' he observed. 'I think it's important that investors have an alternative which should give them the possibility to invest in an asset class with low volatility and with a low correlation to traditional equity and bond markets.'

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