CSFB’s Fund Linked Products Group and CSFB’s Hedge Funds Investments Group have launched a series of investment products for active and index-linked platforms based on the ten sectors of the CSFB/Tremont hedge fund universe. CSFB says the new products – based on a platform called Sector Plus – will allow investors to take an active role in their tactical asset allocation.
“As the alternative investment management industry matures, strategy research and performance benchmarking will increasingly become sector-specific, offering allocators the ability to target specific goals and exposures with their hedge fund investments,” says Jim Vos, CSFB Managing Director and Global Head of HFI.
Tony Pesco, CSFB Managing Director and Global Head of Fund Linked Products, says CSFB believes that this type of hedge fund investment vehicle is “the way forward for the industry.”
Sector Plus allows investors to choose from among ten CSFB/Tremont Sector Invest Indices and eight sector fund of funds managed by the CSFB Hedge Fund Investments Group (HFI). Together with CSFB’s Fund Linked Products Group, HFI’s sector and quantitative teams will assist investors in constructing portfolio solutions dependent on their appetite for risk and their investment needs.
Using risk-management technology, the Fund Linked Products Group (FLP) will work with investors to create tailor-made investment solutions linked to their Sector Plus portfolios. In addition, structured solutions can be overlaid on the customized hedge fund portfolios to deliver the desired risk profile for the investor.
FLP pioneered the protected hedge fund market in 1998 with a multi-manager fund of hedge funds programme. It has since launched over USD$2 billion of investment products linked to the CSFB/Tremont Investable Hedge Fund Index.
CSFB’s 66-man hedge fund investments group manages over USD$8 billion of hedge fund portfolios.