Early estimates indicate the Credit Suisse/Tremont Hedge Fund Index will finish up approximately 0.3% in December.
Investment activity in most hedge fund strategies was relatively quiet throughout the month as many managers maintained minimal risk exposures, according to Credit Suisse/Tremont. Ongoing deleveraging in 2008 by funds and investors resulted in an uncommitted pool of $9 trillion in cash that is waiting on the sidelines, as measured by the St. Louis Federal Reserve.
Persisting trends in bond and currency markets have resulted in gains for trend-following managers in the Managed Futures/CTAs and Global Macro strategies. Namely, yields fell following the Fed’s rate cut announcement, with U.S. 10-year notes touching 2.04% on Dec. 18, the lowest level since 1953 when records began.
Currency markets also experienced a shift as the U.S. dollar ended its 12 week rally with a 10% correction, sliding to a low of US$ 1.45 per Euro on Dec. 18.
Estimates are based on 74% of assets reporting; final December performance will be published January 15.
Credit Suisse/Tremont Hedge Fund Index Strategty Estimates*
|Credit Suisse/Tremont Hedge Fund Index
|Dedicated Short Bias
|Equity Market Neutral
| Event Driven Multi-Strategy
| Risk Arbitrage
|Fixed Income Arbitrage
|Barclays Capital Aggregate Bond Index
|DJ AIG Commodities Index
*74% of funds reporting