Early View: Credit Suisse/Tremont Hedge Fund Index Estimated to Finish Almost Flat at +0.17% in October

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NEW YORK--(Business Wire)--
Early estimates indicate the Credit Suisse/Tremont Hedge Fund Index ("Broad
Index") will finish almost flat with a +0.17% return in October (based on 71% of
assets reporting).

Hedge funds had a slightly positive month overall with a widening dispersion of
returns among strategies, based on whether managers could take advantage of
October`s market volatility. The Chicago Board Options Exchange Volatility Index
(VIX), that measures the implied volatility of S&P 500 Index options, began a
surge of approximately 30% on October 23 that took the VIX from just over 20 to
just over 30, as equity markets took a turn downward in the second half of the
month. October`s US equity gains for many Long/Short managers were concentrated
in the industrial, utilities and health sectors, and from shorting financials.
Some managers which have had positive returns in recent months have begun to
take profits and wind down for the year, while others which have struggled due
to their defensive positions earlier in the year continued to actively seek
opportunities arising from the market volatility.

Macro data was mixed, with positive earnings momentum in the US and globally, as
well as positive GDP growth figures for the third quarter in the US and China,
and encouraging PMI numbers for the Eurozone (except the UK which saw its
economy shrink by 0.4% in 3Q). On the other hand, PMI numbers in Singapore
slipped to 50.2 from a peak of 54.4 in August, personal spending in the US
dropped by 0.5%, and US consumer confidence dropped from 73.5% in September to
70.6%, according to the Reuters/University of Michigan Consumer Sentiment Index.

Certain managers in Equity Market Neutral and Relative Value strategies believe
that the increase in market volatility may continue and will likely favor
securities pickers who perform fundamental analysis. We believe sideways markets
are also generally a better environment for arbitraging rather than long-biased,
directional approaches. For example, Merrill Lynch reports that the convertible
bond market was down for the first time since January, but Convertible Arbitrage
managers had their 11th consecutive month of positive performance as they
shifted their focus to arbitraging strategies rather than the long-only-type
credit plays that were profitable earlier in the year. Equity Market Neutral
managers also experienced a positive month and their performance relative to
other hedge fund strategies improved, since its market neutral profile can give
the strategy an advantage over those with higher market correlations when
volatility rises. Dedicated Short Bias had its first positive month since
February, and was the performance leader with 5.86% for the month, while many
Managed Futures managers gave back some of the profits of the previous two
months.

Strategy Estimates

Index Oct-09 Sep-09 YTD
CS/Tremont Hedge Fund Index 0.17% 3.04% 15.16%
Convertible Arbitrage 1.90% 3.23% 45.64%
Dedicated Short Bias 5.75% -5.27% -18.53%
Emerging Markets 1.37% 4.94% 26.37%
Equity Market Neutral -0.53% 0.96% 4.70%
Event Driven 0.43% 2.89% 15.21%
Distressed 1.08% 3.38% 16.01%
Event Driven Multi-Strategy 0.22% 2.52% 14.71%
Risk Arbitrage 0.10% 1.60% 10.52%
Fixed Income Arbitrage 2.49% 2.77% 24.98%
Global Macro 0.32% 2.77% 9.43%
Long/Short Equity -1.18% 3.23% 15.30%
Managed Futures -2.23% 2.97% -6.35%
Multi-Strategy 1.05% 2.86% 21.93%
MSCI World -1.85% 3.81% 20.21%
Barclays Capital Aggregate Bond Index 0.47% 2.14% 8.35%
DJ-UBS Total Return Commodities Index 3.28% 1.57% 12.64%

* All data was obtained from publicly available information, internally
developed data and other third party sources believed to be reliable. Credit
Suisse has not sought to independently verify information obtained from public
and third party sources and makes no representations or warranties as to
accuracy, completeness or reliability of such information.

Estimates are based on 71% of assets reporting; final September performance will
be published November 15th on Bloomberg and online at www.hedgeindex.com. For a
complete description of the Credit Suisse/Tremont Hedge Fund Index, please see
the index rules available at www.hedgeindex.com.

Credit Suisse Tremont Index LLC is the joint venture company of Credit Suisse
Index Co., Inc., a subsidiary of Credit Suisse Co., Inc., and Tremont Group
Holdings, Inc. Credit Suisse Tremont Index LLC is headquartered at 11 Madison
Avenue, New York, NY 10010-3629.

Credit Suisse AG

As one of the world's leading banks, Credit Suisse provides its clients with
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Credit Suisse offers advisory services, comprehensive solutions and innovative
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over 50 countries and employs approximately 47,400 people. Credit Suisse is
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Zurich. The registered shares (CSGN) of Credit Suisse's parent company, Credit
Suisse Group AG, are listed in Switzerland and, in the form of American
Depositary Shares (CS), in New York. Further information about Credit Suisse can
be found at www.credit-suisse.com.

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In its Asset Management business, Credit Suisse offers products across a broad
spectrum of investment classes, including alternative investments such as
private equity, hedge funds, real estate and credit, as well as multi asset
class solutions, which include equities and fixed income products. Credit
Suisse`s Asset Management business manages portfolios, mutual funds, and other
investment vehicles for a broad spectrum of clients ranging from governments,
institutions and corporations to private individuals. With offices focused on
asset management in 21 countries, Credit Suisse`s Asset Management business is
operated as a globally integrated network to deliver the bank`s best investment
ideas and capabilities to clients around the world.

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Disclaimer

This document was produced by and the opinions expressed are those of Credit
Suisse as of the date of writing and are subject to change. It has been prepared
solely for information purposes and for the use of the recipient. It does not
constitute an offer or an invitation by or on behalf of Credit Suisse to any
person to buy or sell any security. Any reference to past performance is not
necessarily a guide to the future. The information and analysis contained in
this publication have been compiled or arrived at from sources believed to be
reliable but Credit Suisse does not make any representation as to their accuracy
or completeness and does not accept liability for any loss arising from the use
hereof.

Copyright © 2009, CREDIT SUISSE GROUP AG and/or its affiliates. All rights
reserved.

Bode Associates
Meg Bode, 516-869-6610
meg@bodeassociates.com

Copyright Business Wire 2009