The CSFB/Tremont Sector Invest Indices are derived from the existing CSFB/Tremont Hedge Fund Index and consist of 114 funds across the 10 separate indices. They are designed, the company said in a press release, to provide representative and objective benchmarks and cover ten major hedge fund trading strategies. These are: convertible arbitrage, dedicated short bias, emerging markets, equity market neutral, event driven, fixed income arbitrage, global macro, long/short equity, managed futures, and multi-strategy.
To be included in the indices, hedge funds must be open to investment and must meet certain liquidity conditions. In general, CSFB/Tremont tries to include the largest funds by assets under management that fit these criteria, the company said A full list of rules on index inclusion will be available October 15 at www.hedgeindex.com .
CSFC/Tremont said it plans to offer products linked to the new indices which will allow investors to construct personalized portfolios tailored to risk/return preferences.