Global Outlook 2024 Report

Newsletter

Like this article?

Sign up to our free newsletter

Credit Suisse Alternative Index Replication sees inverse index gain in early January

Related Topics

The Credit Suisse Inverse Long/Short Equity Replication Index was up 0.61 per cent net for the month through 15 January, according to Jordan Drachman, head of research for alternative b

The Credit Suisse Inverse Long/Short Equity Replication Index was up 0.61 per cent net for the month through 15 January, according to Jordan Drachman, head of research for alternative beta strategies at Credit Suisse.

The Long/Short Equity Replication Index was down by 0.74 per cent.

‘Following a drop in equity market volatility in late December, volatility increased after the first week in January and remains high compared to historical levels,’ Drachman (photo) says. ‘The mixed market signals created a challenging environment for hedge funds. Hence, through mid-January, the Credit Suisse Inverse Long/Short Equity Replication Index has responded with positive performance.’

‘By providing inverse hedge fund-like returns, the index is able to offer investors insight in to the performance of short exposure to the common factors driving the long/short equity sector of the hedge fund universe.’

The Alternative Index Replication Long/Short Equity Replication Index seeks to track the long/short equity sector of the benchmark Credit Suisse/Tremont Hedge Fund Index.

The Alternative Index Replication Long/Short Equity Replication Index reflects the return of a basket of liquid, investible market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of long/short equity hedge fund managers.

The Inverse Long/Short Equity Replication Index reflects the return of a basket of market factors in accordance with an algorithm that aims to approximate the aggregate returns of short exposure to the long/short equity universe.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured