New kids in box: CSFB Tremont indices

According to recent work by Greenwich Associates, the Hedge Fund industry is about to grow by a factor of approximately 10 over the next three years. Massive! In case they get it right, the benchmark section below introduces new kids to the benchmark class, the Credit Suisse First Boston Tremont indices, the most commonly quoted of the hedge fund indices.

Three are quoted including the all-embracing index covering a range of hedge styles with two of the most common sub-indices, the macro-economic section and the long/short equity section.

As a dramatically changing area of financial services, the hedge fund universe needs to be brought into more direct comparative scrutiny with other assets. Many investors might pin this article on the bedroom wall between Anna Kour-nikova and David Beckham. This is the glitzy end of financial services: investors like what they see even if they don't understand it.

Why the glitz? Three drivers steer the need for investors to focus attention on hedge. Firstly, pure demand from high new worth's and institutional investors.