Credit Suisse/Tremont Hedge Fund Index up 9.51% in 2006

The hedge funds tracked by the Credit Suisse/Tremont Blue Chip Investable Hedge Fund Index finished 2006 with average annual returns up 9.51%, according to Oliver Schupp, President of the Credit Suisse Tremont Index, LLC.
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The hedge funds tracked by the Credit Suisse/Tremont

Blue Chip Investable Hedge Fund Index finished 2006 with average annual returns up 9.51%, according to Oliver Schupp, President of the Credit Suisse Tremont Index, LLC.

“We are pleased to present our annual review analyzing the performance of the Credit Suisse/Tremont Hedge Fund Indices for 2006,” says Schupp. “Hedge funds experienced a

stronger than expected year thanks to a favourable market environment that allowed the majority of hedge fund strategies to produce positive end of year results.

Record highs in global markets, mergers and acquisition activity, a stronger than expected earnings season, a pause in the continual rise of interest rates by the Federal Reserve, high energy prices and volatility fluctuations all contributed positively to hedge fund performance for 2006.

Highlights for all Credit Suisse/Tremont Hedge Fund Indices in 2006 were:

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Consistent positive performance of the Credit Suisse/Tremont Hedge Fund Index leading to a strong year for index-linked products, due to the first and last quarters.

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The Credit Suisse/Tremont Hedge Fund Index tracking portfolio had a 0.98 correlation with the Credit Suisse/Tremont Hedge Fund Index.

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For the Credit Suisse/Tremont Hedge Fund Index, Emerging Markets, Event Driven and Multi-Strategy were the top performing sectors for the year.

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The Credit Suisse/Tremont Blue Chip Investable Hedge Fund Index posted positive returns for every month in the first and last quarters of this year.

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Nine of the ten Credit Suisse/Tremont Sector Invest Indices performed positively for the year.

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Convertible Arbitrage and Event Driven all brought positive returns for every month of the year for the Credit Suisse/Tremont Sector Invest Indices.

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Convertible Arbitrage, Emerging Markets, Event Driven, Long/Short Equity and Multi-Strategy ended the year with double digit returns for the Credit Suisse/Tremont Sector Invest Indices.

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Year-to-date INVX outperformed, on a gross basis*, several competing investable indices. The INVX finished 2006 up 10.44%, as compared to the Hedge Fund Research HFRX Global Hedge Fund Index (“HFRX”), up 9.26% and the MSCI Hedge Invest Index (MSCI) that was up 7.63%.

The highlights report can be accessed by clicking here

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