Hedge Funds Modestly Up In March

Investors Offshore, London

19 April 2002

The CSFB/Tremont Hedge Fund Index is up 0.7% for March 2002, according to Roland Lorenzo, President and Chief Operating Officer of Credit Suisse First Boston Tremont Index LLC.

"Hedge funds provided non-correlated diversification and a modest pop in performance during March," observed Mr. Lorenzo. "As global indices gyrate month to month, we continue to see smooth returns in the hedge fund universe."

"Emerging markets funds returned 2.9% and have taken a solid lead among the style-based sectors year-to-date, up 9.9%," said Robert I. Schulman, President of Tremont Advisers.

Trailing emerging markets funds were Dow Jones Industrial Index Funds, up 3.8% year to date, and Global Macro Funds, up 3% year to date. Worst performers year to date were Nasdaq Funds, down 5.4% and Managed Futures, down 4.5%.

The CSFB/Tremont Hedge Fund Index has returned 142.89% for the 99-month period since inception (January 1, 1994 through March 31, 2002).

The Index is comprised of 377 funds as of March 1, 2002 down from 381 funds as of January 1, 2002. Four funds were dropped, including Advisory U.S. Equity Fund I LP and Advisory U.S. Equity Overseas Fund I Ltd - both of which liquidated - and Lipper Offshore Convertibles LP and Lipper Convertibles LP - both of which stopped reporting.

The Index is constructed using a database of more than 2,600 hedge funds. It includes both US and offshore funds, but does not include funds of funds. In order to qualify for inclusion in the index selection universe, a fund must have US $10 million under management, a 12-month track record, and an audited financial statement. Index funds are selected using a formula based on assets under management that ensures the Index always represents at least 85% of total assets in the selection universe. Once added, funds are not excluded until they liquidate or fail to meet the financial reporting requirements, in order to minimize survivorship bias. The Index is calculated on a monthly basis and adjusted for capitalization and return.

The CSFB/Tremont Hedge Fund Index, the only asset-weighted hedge fund benchmark, was designed to establish a standard for tracking and comparing hedge fund performance against other major asset classes, like the S&P 500, on a global basis. Its web site provides interactive tools that allow users to manipulate the information and customize their research.

Credit Suisse First Boston Tremont Index LLC is the joint venture company of Credit Suisse First Boston Index Co., Inc., a subsidiary of Credit Suisse First Boston Inc., and Tremont Advisers, Inc.

Tremont Advisers, Inc. is a wholly owned subsidiary of Oppenheimer Acquisitions Corp., the parent company of OppenheimerFunds, Inc. Tremont is a diversified holding company, which, through its subsidiaries, is engaged in three core businesses: advisory services, information & research, and investment products for the global alternative investment industry. Through its London-based information and market intelligence unit, TASS Research, the firm provides data on the performance of more than 2,600 alternative investment managers and funds. Tremont manages in excess of $1 billion in proprietary funds and has more than $200 million in insurance policies related to alternative investments.

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