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Key highlights for the month:
* Estimates indicate that May marked the first month of negative returns for hedge funds since February 2009. The Credit Suisse/Tremont Hedge Fund Index lost an estimated 2.73% for the month. The index remains up 1.52% year-to-date. Despite overall losses, based on comparable indices hedge funds outperformed global equity markets, which finished down -9.91% for the month, as managers reduced portfolio exposures and risk levels in May.

* Event Driven funds lost an estimated 3.23% in May as equity-oriented managers declined with global equity markets. While distressed and merger arbitrage funds performed slightly better, market sell-offs and indiscriminate levels of correlation across asset classes made it difficult for managers to generate positive performance in May.

* Global Macro returned -0.82% in May, outperforming most of the other sectors in the Index as managers benefited from the overall liquidity of their holdings and their tactical ability to reposition their portfolios in the midst of market volatility. Gains in the space were driven by short euro and equity trades.

* Long/Short Equity funds struggled to find profitable positions amid the global equity market sell-offs in May and returned an estimated -4.08% for the month. Conversely, Dedicated Short Bias was the only strategy to lock in gains last month, finishing up an estimated 6.03%.

Estimates are based on 78% of assets reporting; final May performance will be published June 15th on Bloomberg and online at www.hedgeindex.com. For a complete description of the Credit Suisse/Tremont Hedge Fund Index, please see the index rules available at www.hedgeindex.com.

Credit Suisse Tremont Index LLC is the joint venture company of Credit Suisse Index Co., Inc., a subsidiary of Credit Suisse Alternative Capital, Inc., and Tremont Group Holdings, Inc. Credit Suisse Tremont Index LLC is headquartered at 11 Madison Avenue, New York, NY 10010-3629.

All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.

Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 47,600 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management
In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse's Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse's Asset Management business is operated as a globally integrated network to deliver the bank's best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.Source
KM