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From Kirsten Bischoff, Opalesque New York:

Uncorrelated returns is the oft-heard mantra in presentations to investors for many strategies, but on Wednesday, Credit Suisse Asset Management (CSAM) released research that makes the case for equity market neutral's superiority in highly uncorrelated performance through the financial crisis.

Equity Market Neutral (EMN) stands out as a potential diversifier given the low beta it showed to the 2008 equity markets in what was a historically volatile year...EMN also has lower annualized volatility than other hedge fund strategies over the long-term, indicating that the strategy has avoided the downside risk of markets over time and provided generally positive risk-adjusted returns over the last ten years. - Equity Market Neutral: Diversifier Across Market Cycles

The August 2007 test For many EMN managers the heavy unwinding of crowded trades that occurred in August 2007 stands out as an event that drives current and future risk management processes. Although 50% of the losses in early August were recovered within a few days, most managers began to immediately re-assess their risk models. CSAM cites these new diversification goals born from that event as a key element in allowing EMN funds to weather the market volatility of 2008.

"Th......................

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