Long/Short Equity Hedge Fund Sector Fell Short in November - Credit Suisse

HedgeCo News Archive - Based on November performance for the Credit Suisse Long/Short Equity Liquid Index (LAB Long/Short Equity Liquid Index), Long/Short Equity funds did not fully capitalize on November's equity market rally since many funds are maintaining more conservative positions in anticipation of year-end, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse.

"Long/Short Equity hedge funds underperformed most global equity markets as managers maintained relatively neutral exposure to equity markets and many began to lock in profits before the end of the year." Dr. Drachman noted, "Global Macro hedge funds experienced positive performance this month as managers capitalized on increased macro-economic activity. The LAB Long/Short Equity Liquid Index was down -0.75% (net) for the month, while the Credit Suisse Global Macro Liquid Index (LAB Global Macro Liquid Index) finished up 2.23% (net) in the same period."

LAB (formerly known as Alternative Index Replication or AIR) is a series of indices that seek to replicate the aggregate return profiles of alternative investment strategies using liquid, tradable instruments. The LAB umbrella currently includes the Long/Short Equity Liquid Index and the Global Macro Liquid Index which enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index.