Credit Suisse and Dow Jones join forces on hedge fund indexes
Credit Suisse and Dow Jones Indexes have signed an agreement covering the calculation, licensing, branding and marketing of the hedge fund indexes formerly known as the Credit Suisse/Tremont Hedge Fund Indexes.
Under this agreement, the indexes will be branded Dow Jones Credit Suisse Hedge Fund Indexes, and will be calculated, distributed and marketed by Dow Jones Indexes. Credit Suisse affiliates will continue to manage the financial products linked to the indexes while Credit Suisse and Dow Jones Indexes intend to keep the methodologies and rules for each of the existing indexes consistent with past practices.
The Dow Jones Credit Suisse Hedge Fund Indexes include broad market and investable indexes, all designed to track hedge fund performance. The indexes are constructed from a database of more than 5,000 hedge funds and seek to provide the most accurate representation of the hedge fund universe. The index family presently consists of 17 indexes, including a range of geographical and strategy-specific hedge fund indexes, and will expand over time.
"For over a decade, Credit Suisse has been at the forefront of the hedge fund industry, providing investors with important tools and benchmarks to analyze hedge fund performance,” says Oliver Schupp, president, Credit Suisse Index Co. “This collaboration merges the hedge fund expertise of Credit Suisse with the technology and distribution strengths of Dow Jones Indexes and we are eager to work with them in our continued efforts to develop industry-leading benchmarks and innovative alternative investment solutions."
The current Credit Suisse operational and managerial team remains in place, with Schupp as president of Credit Suisse Index Co, Inc. The indexes will continue to provide accurate representation of the universe of funds, transparency, and oversight and objectivity. Dow Jones Indexes will discontinue its existing hedge fund indexes as of June 30. The joint venture between Credit Suisse and Tremont Capital Management, Inc. has been dissolved.
"Credit Suisse, a leading name in hedge funds, together with Dow Jones Indexes, a leading name in indexing, will result in an exceptional partnership opportunity and a superb range of products," says Michael A Petronella, president designate, Dow Jones Indexes. "This family of hedge fund indexes will be a prominent benchmark for hedge fund performance within the industry.”