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Industry Updates

New Credit Suisse/Tremont Hedge Fund Index research paper shows hedge funds on track for best annual returns in last decade

Wednesday, October 21, 2009
Opalesque Industry Updates - Credit Suisse Tremont Index LLC today released a new research piece, "Q3 2009 Hedge Fund Update: On the Road to Recovery" that reviews third quarter hedge fund performance with a focus on the ongoing recovery of the overall industry.

The report explores the year-to-date performance of hedge funds as represented by the Credit Suisse/Tremont Hedge Fund Index, which are currently on track to post their best annual returns in 10 years. Through September 30, 2009, the Credit Suisse/Tremont Hedge Fund Index is up 15% with 83% of all funds posting positive performance.

Some key takeaways from the report include:

- 26% of all hedge funds have “fully recovered” their losses from 2008, i.e., they have regained all losses to meet or surpass previous peak performance levels.
- Overall, the industry experienced net outflows of $4.8 billion in the third quarter.
- Sizeable redemptions occurred in the Event Driven sector, resulting in a net outflow of $7.4 billion for the quarter.
- The Long/Short Equity sector experienced the most significant increase in new capital, resulting in a net positive flow of $3.0 billion for the quarter.
- Including performance gains, total hedge fund AuM is estimated at $1.4 trillion as of September 30, 2009. This is up from an estimated $1.3 trillion as of June 30, 2009.

Note: Asset flows based on information provided by underlying funds within the Credit Suisse/Tremont Hedge Fund database as of September 30, 2009.

Credit Suisse Tremont Index LLC industry commentaries and publications are available in the Research section on www.hedgeindex.com. Full report is available here: www.hedgeindex.com

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