Credit Suisse Reveals Five Factors Of Global Macro's Outperformance

Credit Suisse Liquid Alternatives, Alpha Strategies, has released a new research report exploring the Global Macro hedge fund strategy specifically, how the strategy has performed through market dislocations, what factors have driven Global Macro hedge funds returns and why these

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Credit Suisse Liquid Alternatives, Alpha Strategies, has released a new research report exploring the Global Macro hedge fund strategy; specifically, how the strategy has performed through market dislocations, what factors have driven Global Macro hedge funds returns and why these factors may be beneficial in times of market stress and upheaval, as in the current market environment.

The Global Macro hedge fund strategy has the broadest investment scope and is typically the most flexible of all hedge fund strategies, may be able to provide positive performance when conditions driving individual markets are in transition.

While certain other strategies may find it difficult to navigate market volatility, Global Macro funds have been able to adapt to the changing regimes, with returns rising during certain periods following market dislocations.

This whitepaper discusses the strategys ability to seek to preserve capital through a range of conditions while seeking to profit from significant dislocations. Some key findings from the report include:

-Global Macro has been the top performing hedge fund strategy since the inception of the Credit Suisse/Tremont Hedge Fund Index in 1994, with an annualized total return of 12.57% (as of 31 January, 2009);

-Five factors have been instrumental in Global Macros outperformance: Flexibility and tactical asset allocation, top-down investment style and macroeconomic focus, global opportunity set, aversion to less liquid credit and other non-liquid investments and low participation risk in crowded trades;

-Global Macro hedge funds generated double-digit average returns in the first 12 months, following several previous market dislocation events, and maintained this double digit performance on an annualized basis over the three years following each dislocation;

-Global Macro hedge funds outperformed hedge funds in general by over 5% on average in the year following a market dislocation.

L.D.

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