The recent fall out in the market for subprime mortgages caused one prominent hedge fund index this week to revise some of its performance returns, InvestmentNews reports.
On Monday, the Credit Suisse/Tremont Hedge Index reported that its hedge fund index for fixed-income arbitrage was up 0.21 percent for June and 3.7 percent for the year-to-date. On Wednesday, the index had revised those returns, telling investors that its hedge fund index for fixed-income arbitrage had fallen almost 6 percent in June and was down 7.5 percent for the year.
The index needed to be revised because Bear Stearns Cos. Inc., which in June said it was bailing out one of its struggling hedge funds that invested in bonds linked to subprime mortgages, did not report returns on time, a Credit Suisse official said.
“It’s a special situation,” says Phillip Schenk, direct or marketing with Credit Suisse Asset Management of New York. “Bear Stearns didn’t make its information available until Tuesday night.”