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New Credit Suisse/Tremont Hedge Fund Index research


Date: Tuesday, May 29, 2007
Author: Media Release

New Credit Suisse/Tremont Hedge Fund Index research reveals that Event Driven hedge funds were the top performing sector over the past 12 months, returning 15.62%*
New York, May 29, 2007  Credit Suisse Index Co., Inc., today released its latest industry commentary, Event Driven for All Seasons, disclosing that the Event Driven hedge fund strategy, which includes the Distressed, Multi-Strategy and Risk Arbitrage sub-sectors, was the top performing sector over the past 12 months, returning 15.62%. The sector has benefited from a wide range of opportunities directly related to corporate capital structures presented in all market cycles.

“Event Driven hedge fund managers can shift exposures based upon opportunities in: merger and acquisition activity, global market conditions, distressed corporate situations and other corporate activities to produce attractive returns across both short and long term investment horizons,” according to the Credit Suisse Index Co., Inc. “Event Driven hedge funds, as represented by the Credit Suisse/Tremont Event Driven Hedge Fund Index, have historically produced high returns with low levels of volatility for the past ten years with a Sharpe Ratio of 1.26.”

Some of the findings in Event Driven for All Seasons include the following:

    Event Driven hedge funds have returned 15.62%*, making this the top performing sector in the Credit Suisse/Tremont Hedge Fund Index over the past 12 months;

    Many Event Driven managers can operate fluently and with flexibility across the entire capital structure, enabling managers to potentially play every aspect of a trade over time, picking spots in a companies capital structure where they think the most attractive risk/return positions lie;

    Recently, the growing number of global M&A deals, due to both a consolidation of industries and falling trade barriers, has resulted in a particularly rich environment for the strategy. Further, the increased LBO volume has driven M&A activity, leading to more opportunities for hedge fund managers;
 
    In a developing trend, Event Driven hedge funds have replaced traditional banks as lenders, allowing corporations to assume more debt, refinance their loans, avoid bankruptcy and continue to grow;
 
    Event Driven managers have applied disciplined hedging and careful portfolio construction techniques.  This means that in a year like 2002 that was marked by a severe dislocation triggered by accounting frauds and high-profile bankruptcies such as Enron and WorldCom, Event Driven hedge funds  were only down 5.94% compared with the MSCI World which was down 14.19%, and the CS High Yield Index which was down 6.24%; and
 
    The Credit Suisse/Tremont Event Driven Hedge Fund Index managers have had negative correlation during equity and credit market drops, but have shown increasingly positive correlation when markets rally.

*1Year performance figure from May 2006 to April 2007
Credit Suisse Index Co., Inc., industry commentaries and publications are available on the Research and News section of our website, www.hedgeindex.com.

Information
Oliver Schupp, Credit Suisse, telephone 212 538 8179, oliver.schupp@credit-suisse.com
Meg Bode, Bode Associates, telephone 516 869 6610, meg@bodeassociates.com
Suzanne Fleming, Credit Suisse, telephone 212 325 7396, suzanne.fleming@credit-suisse.com

Credit Suisse
As one of the world's leading banks, Credit Suisse provides its clients with investment banking, private banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 62,500 people. Credit Suisse's parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CSR), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

In its asset management business, Credit Suisse offers products across the full spectrum of investment classes, ranging from equities, fixed income and multiple-asset class products, to alternative investments such as real estate, hedge funds, private equity and volatility management. Credit Suisse’s asset management business manages portfolios, mutual funds, and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals.  With offices focused on asset management in 18 countries, Credit Suisse’s asset management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

The asset management business of Credit Suisse is comprised of a number of legal entities around the world that are subject to distinct regulatory requirements; certain asset management products and services may not be available in all jurisdictions or to all client types.

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Certain statements in this Press Release constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the companies to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The Companies assume no obligation to update these forward looking statements to reflect actual results, changes in assumption or changes in other factors affecting such forward looking statements.
This information has been presented on the basis of current publicly available information, internally developed data and third party sources believed to be reliable. We take no responsibility or liability for the reliability, accuracy or completeness of third party data.
The information provided herein is confidential and may not be distributed to others without the consent of Credit Suisse Alternative Capital, Inc. Funds and Alternative Solutions. These materials do not constitute an offer to sell securities or a solicitation of an offer to buy securities; no offer to sell or solicitation of an offer to buy any security may be made without the delivery of a private placement memorandum. The use of risk management tools and models do not guarantee investment performance. Past performance is not indicative of future results. This presentation may not be altered except by members of Funds and Alternative Solutions.