Dow Jones, Credit Suisse add hedge fund index with multiple platforms

By Toni Weeks

San Diego, April 6 - Dow Jones Indexes and Credit Suisse AG have launched the Dow Jones Credit Suisse Core Hedge Fund index, according to a press release.

The index is designed to track the liquid, investable hedge fund universe and reflects the performance of managed accounts and other regulated fund structures sourced from multiple best-in-class managed account platforms. This approach represents an advantage over other indexes that are limited to the funds available on single-managed account platforms.

"The Dow Jones Credit Suisse Core Hedge Fund index was launched in response to increasing investor demand for more transparency and liquidity in the hedge fund universe, and we believe the index's unique approach provides investors with a superior tool for measuring hedge fund performance," Oliver Schupp, president of Credit Suisse Index Co., LLC, said in the release.

"The credit crisis of 2008 heightened hedge fund investors' awareness of their liquidity needs, and, as a result, investors today are actively seeking the objective, transparent insight into the performance of the hedge fund industry that the Dow Jones Credit Suisse Core Hedge Fund index provides."

Rebalanced quarterly, the index is UCITS III compliant and includes 40 component funds diversified across seven style-based sectors: event driven, long/short equity, global macro, emerging markets, managed futures, fixed-income arbitrage and convertible arbitrage. The index employs an objective, fully transparent selection process with all index constituents required to provide daily valuations and weekly or better liquidity to be considered for inclusion in the index.

The index will provide investors with unprecedented insight into "this highly sought-after asset class," according to Michael A. Petronella, president of Dow Jones Indexes.

"The Dow Jones Credit Suisse Core Hedge Fund index clearly fills a void for investors seeking a reliable and trustworthy performance gauge of liquid, investable hedge funds," he added.

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