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CSFB/Tremont launches sector invest indexes

Hedge fund index provider Credit Suisse First Boston Tremont Index has launched 10 new investable hedge fund indexes, collectively called the CSFB/Tremont sector invest indexes, in response to “widespread investor demand”, the company said in a statement.

The index provider said the new indexes, based on 10 styles and 114 funds, “aim to achieve a high degree of representation” by including the largest funds by assets under management that are open to investments and meet certain liquidity conditions. The 10 styles covered by the new indexes are convertible arbitrage, dedicated short bias, emerging markets, equity market neutral, event driven, fixed-income arbitrage, global macro, long/short equity, managed futures and multi-strategy.

In August 2003, the company launched an investable hedge fund index, called the CSFB/Tremont investable hedge fund index, based on 60 funds and 10 styles. By January 2004, investment bank Credit Suisse First Boston had sold more than $500 million worth of products linked to that index. The bank will also offer products linked to the new sector indexes, CSFB/Tremont added in the statement.

“We applied the rules-based selection process, minimising subjectivity in fund selection that was successfully introduced in the CSFB/Tremont investable index last year and remains an unmatched standard for hedge fund indexes," said Oliver Schupp, president of Credit Suisse First Boston Tremont Index.

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