Investing August 16, 2004

CSFB/Tremont Hedge Fund Index Falls in July

August 16, 2004 (PLANSPONSOR.com) - The CSFB/Tremont Hedge Fund Index fell 0.31% in July, according to Credit Suisse First Boston Tremont news release. Although this month's returns are less than stellar, the index is still up 2.61% on the year.
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Dedicated short bias was the July’s top performer, gaining 8.12% for the month. “While the US experienced substantial volatility among the segments of its equity markets, short biased funds were poised for outperformance. Short sellers were in an ideal position to take advantage of the market’s shift away from lower quality and distressed companies in July, as the month was characterized by lower volumes during the start of the second quarter earnings seasons,” said Oliver Schupp, President of Credit Suisse First Boston Tremont Index LLC, in the release.

The CSFB/Tremont Hedge Fund Index is comprised of 401 funds as of July 1, 2004.

Today’s release also indicated that CSFB/Tremont Investable Hedge Fund Index is down 0.12% net in July. Once again, dedicated short bias proved to be considerably stronger than the other 10 style-based indices that CSFB/Tremont Investable Hedge Fund Index covers, bringing in a 5.56% gain for the month. “The short sellers produced strong returns in July in a market environment that began to show a marked difference between the stronger and the weaker companies,” stated Schupp.

The CSFB/Tremont Investable Hedge Fund Index was launched with 60 funds across 10 style-based sectors.    The Investable Index, set at 100 on August 1, 2003 with aggregate assets under management representing approximately $55 billion, is the industry’s largest investable index.  

Further information and statistics for past months can be found at www.hedgeindex.com .

-Kip McDaniel

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