Credit Suisse, Dow Jones Partner On Hedge Fund Indices

Jun 22 2010 | 11:39am ET

Credit Suisse Group has a new partner for its widely-used hedge fund indices: Dow Jones.

Credit Suisse has “dissolved” its relationship with Tremont Capital Management and entered into a new one with Dow Jones Indexes. The firm’s suite of 17 hedge fund benchmarks, previously known as the Credit Suisse/Tremont Hedge Fund Indexes, will now be called the Dow Jones Credit Suisse Hedge Fund Indexes.

Little is expected to change, aside from Dow Jones Indexes—which is now 90% owned by the CME Group—will now calculate, distribute and market the indices. The methodology and rules underlying them are intended to remain “consistent with past practices,” both sides said, and Dow Jones Indexes will discontinue its own series of Hedge Fund Strategy Benchmarks.

The Dow Jones hedge fund indices have been in somewhat dire straits since the start of the financial crisis. Illiquidity in some of their constituent funds has forced the company to suspend publication of four of the six at various points over the past three years; currently, only three of the six are actively published.

Dow Jones Indexes will cease the publication for good on at the end of this month.

“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,” Oliver Schupp, president of the Credit Suisse Index Co., said. “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.”

Schupp and the rest of the Credit Suisse team are to remain in place.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...