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General Information

Liquid Alternative Beta

Facts

Focus

Liquid Exposure to Hedge Fund indices including:

  • Broad Hedge Fund Index
  • Event Driven
  • Global Marco
  • Long/Short Equity
  • Merger Arbitrage
  • Managed Futures

Geographies

Global

Investment Size

Various

Investment Approach

Liquid Alternative Beta (LAB) is a series of indices that aim to replicate the aggregate return profiles of alternative investments strategies using liquid, tradable instruments. LAB benefits directly from Credit Suisse’s experience in the alternative investment space, and is supported by a comprehensive quantitative platform with a focus on delivering alternative returns with liquidity and transparency. LAB strategies utilize quantitative processes in order to provide similar risk/return characteristics to alternative indices and strategies by identifying and sizing exposure to proxy factors and/or systematically implementing trades typically used by alternative investment managers. 

Experience

Credit Suisse's hedge fund expertise stems from 10 years of building the market leading Credit Suisse hedge fund index platform, managing funds of hedge funds and running quantitative investment programs.

Quantitative skill set

LAB’s extensive quantitative research platform is supported by a team of analysts with diverse experiences and educational backgrounds in Statistics, Economics, Computer Science and Finance, to name a few, as well as leading academics within the alternative investment space.

Liquidity and transparency

Through the use of listed instruments and indices, LAB has created indices that are both more liquid and more transparent than what is usually associated with alternative investments.

Liquid Alternative Beta Index

The Credit Suisse Liquid Alternative Beta Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of hedge fund managers, as represented by the Credit Suisse Hedge Fund Index.

Event Driven Liquid Index

The Credit Suisse Liquid Alternative Beta Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of hedge fund managers, as represented by the Credit Suisse Hedge Fund Index.

Global Macro Liquid Index

The Credit Suisse Event Driven Liquid Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of event driven hedge fund managers, as represented by the Event Driven sector of the Credit Suisse Hedge Fund Index.

Long/Short Liquid Index

The Credit Suisse Long/Short Liquid Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of Long/Short Equity hedge fund managers, as represented by the Long/Short Equity sector of the Credit Suisse Hedge Fund Index.

Merger Arbitrage Liquid Index

The Credit Suisse Merger Arbitrage Liquid Index aims to gain broad exposure to the merger arbitrage strategy using a pre-defined quantitative methodology to invest in a liquid, diversified and broadly representative set of announced merger deals in accordance with the index rules.

Managed Futures Liquid Index

The Credit Suisse Managed Futures Liquid Index uses a predefined quantitative methodology in seeking to gain exposure to the managed futures strategy. Managed Futures hedge funds seek to add alpha by employing systematic trading strategies aimed at capitalizing on market trends across a range of asset classes including: Equities, Fixed Income, Commodities, Currencies, and Short-Term Rates.

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