Long/Short Equity Hedge Funds Finish 2009 with Double-Digit Returns, Based on Credit Suisse Liquid Alternative Beta ("LAB") Index Performance

Jan 05, 2010, 14:15 ET from Credit Suisse AG

NEW YORK, Jan 5 /PRNewswire/ -- Based on December performance for the Credit Suisse Long/Short Equity Liquid Index ("LAB Long/Short Equity Liquid Index"), Long/Short Equity funds ended the year on a high note as managers took advantage of increased equity market opportunities to further their gains in December, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse.

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Dr. Drachman noted, "Long/Short Equity hedge funds experienced positive December returns in line with many global equity markets. In particular, managers were able to capitalize on increased volatility in Asian markets, including a significant year-end rebound in Japan which contributed to opportunities in the sector. The LAB Long/Short Equity Liquid Index was up 1.19% (net) for the month and 13.12% (net) year to date. However, the Credit Suisse Global Macro Liquid Index ("LAB Global Macro Liquid Index") was down 1.70% (net) in December and up 3.93% (net) year to date."

About Liquid Alternative Beta ("LAB") Indices

LAB (formerly known as Alternative Index Replication or "AIR") is a series of indices that seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments. The LAB umbrella currently includes the Long/Short Equity Liquid Index and the Global Macro Liquid Index which enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index.

Performance for the LAB Global Macro and Long/Short Equity Liquid Indices (shown below) is calculated daily and shown net of a 0.50% 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 or on Bloomberg at < ILAB >.

                                                Dec-09     Nov-09      2009
                                                ------     ------      ----
    LAB Long/Short Equity Liquid Index (Net)     1.19%     -0.75%    13.12%
    ----------------------------------------     -----     ------    ------
    Credit Suisse/Tremont Long/Short Equity
     Hedge Fund Index                             N/A*      1.92*      N/A*
    ---------------------------------------      -----      -----      ----
    LAB Global Macro Liquid Index (Net)         -1.70%      2.23%     3.93%
    -----------------------------------         ------      -----     -----
    Credit Suisse/Tremont Global Macro Hedge
     Fund Index                                   N/A*      3.52*      N/A*
    ----------------------------------------      ----      -----      ----
    S&P 500 TRI Index**                          1.93%      6.00%    26.47%
    -------------------                          -----      -----    ------
    Dow Jones World Index**                      2.23%      3.81%    31.97%
    -----------------------                      -----      -----    ------

    *  December performance will be published January 15th on Bloomberg and
       online at www.hedgeindex.com
    ** Total Return Indices

Additional features of the LAB Long/Short Equity and Global Macro Liquid Indices include:

  • LAB 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 employed in seeking to replicate the returns of specific hedge fund strategies
  • Transparency via website (www.credit-suisse.com/alternativebeta) and pages on Bloomberg < ILAB >

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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