Credit Suisse has launched the Long/Short Equity Replication Index, the first in a planned suite of indices designed to mimic returns of major hedge fund strategies.

The new index is designed to capture the risk-return characteristics represented by the Credit Suisse/Tremont Long/Short Equity Hedge Fund Index.

 Index values are finalised daily.

The new products draw upon a strategic alliance with leading academic researchers in the field of quantitative investments: Professors Bill Fung, David Hsieh, and Narayan Naik.

A number of investment firms, such as Goldman Sachs, have rolled out hedge fund “clones” or replication indices designed to mirror returns of hedge fund strategies. Critics say these indices, while they may on average charge lower fees, cannot necessarily mimic the performance of the strongest individual funds or capture rapid changes in the investment moves within a particular hedge fund sector.