Credit Suisse launches new Long/Short Equity Replication index

By Devika Patel

Knoxville, Tenn., May 19 - Credit Suisse said in a press release it has formed a new index that aims to capture the risk/return characteristics represented by the Credit Suisse/Tremont Long/Short Equity Hedge Fund index.

The Long/Short Equity Replication index is the first in a planned suite of Alternative Index Replication (AIR) products that will be designed to replicate the performance of the major hedge fund strategies.

Index values are finalized daily and quoted on Bloomberg under the symbol AIRI.

"Long/short equity is typically the largest allocation and dominant return source in hedge fund portfolios, and investors today are growing increasingly concerned about the correlation of their hedge fund investments to the broad equity markets," Credit Suisse's head of beta strategies, Oliver Schupp, said in the release. "This index allows them to gain systematic exposure and enhanced liquidity through a direct investment, or to tactically adjust their portfolios through a short position."

"The Long/Short Equity Replication index allows our clients to participate in the performance of this rapidly growing market segment," the bank's head of fund-linked products, Walter Rotondo, also said in the release.

Zurich-based Credit Suisse provides its clients with investment banking, private banking and asset management services.

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