HEDGE FUNDS - The Crédit Suisse First Boston/Tremont (CSFB/Tremont) hedge fund index remains up 0.9% for August, despite a one-week delay attributed to the terrorist attack on New York two weeks ago.

The index, constructed from a database of 2,600 US and offshore funds but not including funds of funds, comprised 375 funds at the beginning of July and was up 3% for the year to date. It is calculated each month and funds must have at least US$10m (€11m) under management with audited accounts. It was designed to track hedge fund performance against other major asset class indices, such as the S&P 500.

According to CSFB/Tremont Index LCC’s chief executive, Robert S. Sloan, its hedge fund index has “significantly outperformed the Dow, S&P and NASDAQ.”

Nicola Meaden, director of Tremont Advisers, one of CSFB/Tremont’s joint holding companies, comments: “Hedge funds continue to provide important diversification benefits as investors world-wide struggle with very volatile and difficult markets.”

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