Hedge Funds Hold Their Own in August

Performance of the Dow Jones Credit Suisse Core Hedge Fund Index Suggests Hedge Funds Averted Severe Losses Seen in Broader Equity Markets in the First Half of the Month

News provided by

Credit Suisse AG

Aug 15, 2011, 10:33 ET

NEW YORK, Aug. 15, 2011 /PRNewswire/ -- In one whiplash inducing week on Wall Street, markets have experienced some of the most extreme consecutive pricing swings on record, ultimately resulting in a 13.6% loss for the Dow Jones Global Index month-to-date (through August 10th).

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However, according to Oliver Schupp, President of Credit Suisse Index Co., LLC, "Despite challenging conditions, hedge funds appear to have so far been effective in their attempt to provide a level of capital preservation, and overall have limited losses relative to perceived riskier asset classes such as equities. The Dow Jones Credit Suisse Core Hedge Fund Index is down 3.7% month-to-date compared to a loss of 13.6% for the Dow Jones Global Index over the same time period."


	MTD through 8/10/11	YTD through 8/10/11
Dow Jones Credit Suisse Core Hedge Fund Index	-3.66%	-4.54%
Convertible Arbitrage	-2.75%	-2.89%
Emerging Markets	-3.80%	-0.32%
Event Driven	-5.08%	-7.83%
Fixed Income Arbitrage	-0.56%	1.46%
Global Macro	-3.38%	-7.42%
Long/Short Equity	-6.55%	-6.22%
Managed Futures	1.83%	0.82%
Dow Jones Global Index	-13.56%	-12.04%
Dow Jones Industrial Average	-11.58%	-5.96%
S&P 500	-13.18%	-9.83%

Brian Peterson, Head of the Hedge Fund Index Group within Credit Suisse Asset Management, LLC said, "Considering the diversity of managers within the Dow Jones Credit Suisse Core Hedge Fund Index, actions and adjustments vary, but in general, many managers were effectively de-risking in more of a strategic rather than tactical way by reducing net exposure in the weeks, or even months, preceding the correction. At this point, protecting the portfolio seems to be a clear focus, and we see that with many funds holding higher than average cash levels, with some putting that excess buying power to work by adding short positions."

Michael A. Petronella, President, Dow Jones Indexes, added, "With 100% of participating funds now providing NAVs on a daily basis to the Dow Jones Credit Suisse Core Hedge Fund Index, investors can gauge the impact of significant market events on the hedge fund industry in a far more timely and informed fashion than ever before."

Additional information about the Dow Jones Credit Suisse Core Hedge Fund Index and all of the Dow Jones Credit Suisse Hedge Fund Indexes -- including research, fund performance and constituent fund information -- can be found at www.hedgeindex.com.

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