NEW YORK (HedgeWorld.com)--Investment vehicles linked to the CSFB/Tremont* Investable Hedge Fund Index, including principal guaranteed notes, received more than US$500 million of capital in less than three months.
"We are just beginning," said Oliver Schupp, president of CSFB Tremont Index LLC. He sees a growing trend toward index investing.
Industry observers expect large inflows into indexes this year, in particular from institutions new to hedge fund investing but familiar with the general index approach .
"The swift accumulation of investments through index-linked products demonstrates the importance of indexes as a tool for gaining access to a diversified spectrum of hedge funds through a single investment," commented Anthony Pesco, head of the Fund-Linked Products Group at CSFB, in a statement.
Several other firms, including MSCI and Standard & Poor's, have introduced hedge fund index funds in the past year or so.
The core CSFB/Tremont fund was launched in October last year, after an investable index was introduced. Based on the long-standing CSFB/Tremont benchmark, it allocates to 60 managers across 10 strategies--typically to the largest funds in each strategy segment of the index, provided these are open to investment and meet certain liquidity conditions .
*Tremont Capital Management Inc., Rye, N.Y., is a strategic partner of and a minority investor in HedgeWorld.