CSFB/Tremont Hedge Fund Index is Up 23.4% FOR 1999; Long/Short Equity Funds Return 47.2%; Outperforming All Major Indices.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 18, 2000 The CSFB/Tremont Hedge Fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" Index is up 23.4% for 1999, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Robert S. Sloan, Chief Executive Officer of Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Tremont Index LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , creators of the benchmark. "The long/short equity Long/Short Equity A hedge fund strategy that involves buying certain stocks long and selling others short. There usually isn't a restriction on the country that the stocks trade in either. funds delivered spectacular returns for their investors all year," said Mr. Sloan. "The CSFB/Tremont Long/Short Equity Index is up 47.2% for the year compared with the S&P 500 at 19.5%, the Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance Industrial Index at 25.2%, the MSCI $ World Index at 23.6% and the MSCI EAFE The MSCI EAFE (NYSE: EFA) is a stock market index of foreign stocks, from the perspective of a North American investor. The index is market capitalization weighted (meaning that the weight of securities is determined based on their respective market capitalizations. US$ Index at 25.3%." "M&A activity in 1999 reached unprecedented levels, providing tremendous opportunity for managers," added Nicola Meaden, Director of Tremont Advisers. The emerging market funds also turned in excellent performance. In fact, the CSFB/Tremont Emerging Market Index outperformed all other indices for the month of December, posting 15.3%, and for the fourth quarter, surging 30.7%. For the year, emerging market funds are up 44.8%. Performance for the CSFB/Tremont Hedge Fund Index and the nine style-driven sub-indices are calculated monthly. December, fourth quarter and year-end 1999 returns for all categories are listed below and at www.hedgeindex.com. Category December 4th Quarter 1999 --------------------------------------------------------------- CSFB/Tremont Hedge Fund Index 8.5% 16.6% 23.4 Convertible Arbitrage 0.9% 2.9% 16.0% Dedicated Short Bias -6.6% -11.0% -14.2% Emerging Markets 15.3% 30.7% 44.8% Equity Market Neutral 1.0% 3.4% 15.3% Event Driven 3.1% 5.6% 22.3% Fixed Income Arbitrage 1.0% 2.7% 12.1% Global Macro 9.2% 16.8% 5.8% Long/Short Equity 13.0% 27.8% 47.2% Managed Futures 2.3% -3.1% -4.7% Dow Jones Industrial Index 5.7% 11.2% 25.2% MSCI $ World Index 8.0% 16.6% 23.6% MSCI EAFE US$ Index 8.9% 16.6% 25.3% S&P 500 5.8% 14.5% 19.5% The CSFB/Tremont Hedge Fund Index returned 220.29% for the 72-month period since inception (January 1, 1994 through December 31, 1999). For additional current and historical data including more comparisons with other widely followed global indices visit www.hedgeindex.com. 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. The CSFB/Tremont Hedge Fund Index is comprised of 284 funds. The Index is constructed using the TASS TASS - Template ASSembly language. Intermediate language produced by the Manchester SISAL compiler. + database of more than 2,600 hedge funds. It includes both US and off shore funds, but does not include funds of funds. Funds are not excluded until they liquidate or fail to meet the financial reporting requirements, in order to minimize survivorship bias Survivorship Bias Specifically in the context of mutual funds, the tendency for poor performers to drop out while strong performers continue to exist. This results in an overestimation of past returns. . In order to qualify for inclusion in the universe, a fund must have US $10 million under management and an audited financial statement. The Index is calculated on a monthly basis and adjusted for capitalization and return. Funds are reselected quarterly. Reselection for the first quarter 2000 will be announced shortly. 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. The company's management team includes from CSFB CSFB Credit Suisse First Boston CSFB Cyclically Shifted Filter Bank , Paul Calello, Managing Director, Robert S. Sloan, Managing Director, and Roland Lorenzo, Director, and from Tremont Advisers, Robert I Robert I, duke of Normandy Robert I (Robert the Magnificent), d. 1035, duke of Normandy (1027–35); father of William the Conqueror. He is often identified with the legendary Robert the Devil. . Schulman, President and COO, and Nicola Meaden, Director. Credit Suisse First Boston Tremont Index LLC is headquartered at 11 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10010-3629. Credit Suisse First Boston is a leading global investment banking firm, providing comprehensive financial advisory, capital raising, sales and trading, and financial products for users and suppliers of capital around the world. It operates in over 60 offices across more than 30 countries and has over 14,000 employees. As of December 31, 1998, CSFB has $6.7 billion in revenues, $7.1 billion in equity and $291 billion in assets. The Firm is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Zurich-based Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Group. Tremont Advisers, Inc. (TMAVB) is a diversified holding company which, through its subsidiaries, is engaged in three core businesses: consulting, information & research, and investment products for the global alternative investment industry. Tremont holds leadership positions in each of its specialty areas and advises on approximately $6.5 billion in alternative investment assets. Through its London-based information and market intelligence unit, TASS Investment Research Ltd, the firm provides data on the performance of more than 2,600 alternative investment managers and funds. Tremont manages in excess of $500 million in proprietary funds and has more than $100 million in insurance policies related to alternative investments. Tremont's wholly owned subsidiaries, Tremont Partners, Inc., and Tremont Securities, Inc., are registered as investment advisers under the Investment Advisers Act of 1940 and as a registered broker/dealer under the Securities Exchange Act of 1934, respectively. Tremont is headquartered in Rye, New York and has offices in Toronto, Bermuda and London. Certain statements in this Press Release constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The Companies assume no obligation to update these forward looking statements to reflect actual results, changes in assumption or changes in other factors affecting such forward looking statements. |
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