The new Credit Suisse Long/Short Liquid Index (Net) ETN will enable the US investors to access Credit Suisse/Tremont Long/Short Equity Hedge Fund Index strategy through an exchange-traded product.
The new ETN is designed to correlate to the historical performance of the Credit Suisse Tremont Long/Short Equity Hedge Fund Index by tracking the performance of non-hedge fund, transparent market measures. It seeks to replicate the performance of the Long/Short Equity hedge fund sector as represented by the Credit Suisse Long/Short Liquid Index (Net), an index which is calculated intraday and reflects the return of a basket of 18 liquid, investable market factors.
Moreover, the factors are selected and weighted monthly in accordance with an algorithm that aims to track the performance of the Credit Suisse/Tremont Long/Short Equity Hedge Fund Index.
Oliver Schupp, president of Credit Suisse Tremont Index and head of the Beta Strategies Group which manages Credit Suisse’s Liquid Alternative Beta strategies, said: “We are very excited to be bringing the return profile of our leading hedge fund indices to a broad US investor base through the launch of this new ETN.”
Michael Clark, head of structured retail products in the investment bank at Credit Suisse, said: “Credit Suisse/Tremont was a pioneer in the measurement of alternative beta over a decade ago and we are now leveraging this expertise to meet the growing demand for liquid, cost-efficient, alternative products. We look forward to launching additional ETNs on other alternative strategies in the near future.”
