PRIME SERVICES RISK & PORTFOLIO ADVISORY

PLEASE FIND IMPORTANT LEGAL INFORMATION ON LAST PAGE

PLEASE
Exhibit 1: Quarterly Hedge Fund Flows by Strategy
Exhibit 2: US Internet Software & Services Exposures
Going With The Flow(s)

Another Strong Quarter

Recently released HFR data shows that flows continued to accelerate through Q2, leaving the industry
with the strongest first half since the crisis. This is consistent with our Annual Investor Survey where a vast
majority of respondents indicated they were looking to invest in hedge funds. Despite strong inflows
overall, the flows to Equity hedge funds declined considerably from last quarters post crisis high Please
see Page 8 for more.











Social Media Status Update

Yellens bubble comments and recent earnings have brought Software names back into focus for the first
time since this springs rout. Positioning in the space has lagged the recovery in the sector - up from the
May low but well below this years peak.
Credit Suisse First Look 23-Jul-2014
Source: Prime Services Risk & Portfolio Advisory.
Chart shows net and gross exposure to the US Internet Software & Services GICS Industry on the CS Prime Services Platform.
Mark Connors
+ 1 212 325 5281
Mark.Connors@credit-suisse.com

Key Themes

Net Exposure The Long/Short ratio
edged up slightly with modest increases
across regions. Despite this, we are still
close to the years low on this measure.
Looking at three years of history, this is
around the 65
th
percentile.

Gross Exposure Largely unchanged
last week across strategies. Event Driven
was the only space where we detected
moderate increases.

Macro/CTA Net long exposures to
Developed Markets edged lower from
the recent peak with the bulk of the
decline coming from Core Europe.

Cyclical Exposure At 3.8X the
cyclical to defensive ratio is now below
the three-year median. Most recent
decline has been driven by increases in
healthcare exposure, notably in Europe.

Region/Sector Dispersion has been
high this month, with overweight in US
Consumer Discretionary and Asian
Telecoms working. For more details
please see our sector attribution chart.

Commodity Net exposure to Energy
has continued to decline despite
mounting geopolitical tensions.

Performance July continues to be a
good month for the widely held US
shorts (with a few notable exceptions).
As of Friday, the longs pulled ahead of
the S&P both for the month and the
year. Across strategies the daily indices
paint a mixed picture with most
strategies in negative territory for the
month.
Source: HFR
Oct-12 Apr-13 Oct-13 Apr-14
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
N
e
t

E
x
p
o
s
u
r
e

(
a
s

p
c
t

g
r
o
s
s
)

-

B
l
u
e
50%
60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
160%
G
r
o
s
s

E
x
p
o
s
u
r
e

(
G
r
e
y
)
Current Level
Q
2

2
0
0
9
Q
3

2
0
0
9
Q
4

2
0
0
9
Q
1

2
0
1
0
Q
2

2
0
1
0
Q
3

2
0
1
0
Q
4

2
0
1
0
Q
1

2
0
1
1
Q
2

2
0
1
1
Q
3

2
0
1
1
Q
4

2
0
1
1
Q
1

2
0
1
2
Q
2

2
0
1
2
Q
3

2
0
1
2
Q
4

2
0
1
2
Q
1

2
0
1
3
Q
2

2
0
1
3
Q
3

2
0
1
3
Q
4

2
0
1
3
Q
1

2
0
1
4
Q
2

2
0
1
4
-40B
-30B
-20B
-10B
B
10B
20B
30B
F
l
o
w
s
Strategy
Equity Hedge
Event Driven
Macro
Relative Value
Global Risk Snapshot
Hedge Fund Leverage Total long market value plus the absolute total
short market value of all clients positions on the platform (both prime
brokerage and equity swaps) divided by Total client equity.
Excess Total excess cash plus excess buying power across all clients
divided by clients' total PB GMV.
Commodity Exposure We show net exposure to precious metals and
energy from futures, swaps and exchange traded funds for hedge fund
clients across the platform. The measure is expressed as a percentage
of gross delta exposure for each commodity.
GIobaI Long/Short Ratio Total long exposure divided by total abso-
lute short exposure minus 1.
Ratio of CycIicaI to Defensive Stocks Net exposure of Cyclical posi-
tions (Consumer Discretionary, Energy, Financials, ndustrials,
Technology, Materials) divided by the Net exposure of Defensive
(Consumer Staples, Health Care, Telecommunications, Utilities) po-
sitions for Equity Long/Short clients.
Net Exposure Net exposure is the net delta equivalent equity exposure
expressed as a percentage of the gross delta equivalent exposure. For
the global page we express as a percentage of the total gross delta,
for the regional page it is expressed as a percentage of the regional
gross delta. For some exhibits we break down by sector and country. *
Color indicates Z-Score >1.5 (green) and <-1.5 (red) relative to past
year of history.
Macro/CTA Index Exposure represents net delta exposures ex-
pressed as a percentage of total index gross exposure for Macro/CTA
Funds in Developed Markets..
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 2.. Souces: Credit Suisse Prime Services, Bloomberg
July 23, 2014
Oct'12 Apr'13 Oct'13 Apr'14
0%
10%
20%
30%
40%
50%
60%
70%
N
e
t

E
x
p
o
s
u
r
e
51%
Macro/CTA Developed Market Exposure
Jan'11 Jan'12 Jan'13 Jan'14
-20%
0%
20%
40%
60%
E
M

N
e
t

E
x
p
o
s
u
r
e
Tactical Trading
Long Short
EM Net Exposure
Jan'10 Jan'12 Jan'14
1.8x
2.1x
2.4x
2.7x
L
e
v
e
r
a
g
e
15%
20%
25%
30%
35%
E
x
c
e
s
s
2.67
19.3%
Hedge Fund Leverage and Excess
(All Hedge Funds)
Leverage Excess
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
2.0x
3.0x
4.0x
T
o
t
a
l
U
s
e
d

L
e
v
e
r
a
g
e
Hedge Fund Leverage (by Strategy)
Event Driv.. Long Short Multi Strat Tactical Tr..
Jul 13 Oct 13 Jan 14 Apr 14 Jul 14
40%
42%
44%
46%
48%
50%
52%
54%
56%
58%
L
o
n
g

S
h
o
r
t

R
a
t
io
1300
1400
1500
1600
1700
M
X
W
O

N
D
E
X
47%
Long Short Bias for ELS
Jul-13 Oct-13 Jan-14 Apr-14 Jul-14
3.5
4.0
4.5
5.0
5.5
C
S

P
r
im
e

C
y
c

o
v
e
r

D
e
f
2.2
2.4
2.6
M
S
C

W
o
r
ld

C
y
c

D
e
f

R
a
t
io
3.8
MSC World CycDef
Ratio
CS Prime CycDef Ratio
Cyclicals vs Defensive (global)
Jan'13 Apr'13 Jul'13 Oct'13 Jan'14 Apr'14 Jul'14
-0.6
-0.4
-0.2
0.0
0.2
0.4
N
e
t

E
x
p
o
s
u
r
e
Commodities
Agriculture Base Metals Energy Precious Met..
GROUPNG
POSTONDATE
07/19/.. 09/30/.. 12/31/.. 03/31.. 06/30/.. 07/11/.. 07/18/..
Global 22.2% 19.4% 20.1% 19.2% 19.2% 20.9% 18.3%
Net Exposure - L/S Funds
North Ameri..
Europe
Asia
EM
8.8% 7.9%
8.5%
7.4% 7.5%
9.3%
7.0%
9.9%
7.8%
9.1%
7.8%
10.9% 8.0% 8.1%
0.5%
2.5%
0.5%
2.4%
0.6%
2.7%
0.7%
3.5%
0.4%
3.2%
0.4%
2.0%
0.2%
1.9%
Contribution to Net - L/S Funds
Consumer D..
Consumer S..
Energy
Financials
Health Care
ndustrials
nformation ..
Materials
Telecommun..
Utilities
ndex
2.8%
0.6%
1.6%
2.7%
0.4%
0.6%
1.2%
3.9%
0.2%
4.0%
3.5%
0.2%
3.5%
2.2%
-6.1%
0.5%
0.5%
1.1%
3.2%
3.4%
3.8%
2.3%
-6.5%
0.5%
0.4%
1.2%
3.1%
3.2%
2.6%
3.6%
2.3%
0.5%
3.1%
3.3%
4.1%
2.5%
7.0%
3.3%
2.0%
1.8%
2.0%
-4.6%
0.3%
0.6%
4.1%
2.3%
2.2%
7.9%
-4.0%
0.1%
0.1%
3.3%
3.2%
2.2%
2.6%
2.3%
1.7%
7.5%
-2.4%
0.2%
-0.1%
0.4%
3.5%
2.2%
2.1%
2.4%
7.1%
1.5%
6.5%
1.6%
6.3%
-6.8%
1.6%
-6.0%
3.0%
6.9%
1.8%
Contribution to Net - L/S Funds
Tho socor ur|bu|on gruphs show ho uorugo socor conr|bu|on or ouch socor
busod on ho ooru|| Long/Shor c||on book u Crod| Su|sso Pr|mo Sor|cos. Th|s |s
p|ood ugu|ns ho MTD (hrough Fr|duy) rourn or ouch socor. Wo do|no oorwo|gh
(undorwo|gh) us |o porconugo po|ns moro (|oss) hun ho wo|gh|ng |n ho rog|onu|
|ndox.
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
Regional Risk Snapshot
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 3.. Souces: Credit Suisse Prime Services, Bloomberg
Jul'13 Oct'13 Jan'14 Apr'14 Jul'14
0.0
5.0
10.0
C
S

P
r
im
e

A
m
e
r
ic
a

C
y
c
D
e
f

R
a
t
io
2.1
2.2
2.3
2.4
2.5
S
&
P

5
0
0

C
y
c
D
e
f

R
a
t
io
CS Americas CycDef Ratio
SPX CycDef Ratio
Americas Cyclical to Defensive Stocks (5-day average)
(Equity Long/Short Funds Only)
07/19/.. 09/30/.. 12/31/.. 03/31/.. 06/30/.. 07/11/.. 07/18/..
USA
Brazil
Canada
Mexico
Grand T.. 14.6%
0.0%
0.4%
0.1%
14.0%
13.7%
0.0%
0.1%
0.1%
13.4%
16.0%
0.1%
0.0%
0.1%
15.8%
14.2%
0.1%
0.2%
0.2%
13.6%
17.6%
0.1%
-0.4%
0.1%
17.8%
15.8%
-0.1%
-0.6%
0.0%
16.5%
19.4%
-0.1%
-1.2%
0.0%
20.9%
Americas Contribution to Net - by Country
(Equity Long/Short Funds Only)
-8% -6% -4% -2% 0% 2% 4% 6% 8%
Contribution to Net
-2.0%
0.0%
2.0%
S
&
P

5
0
0

S
e
c
t
o
r

M
T
D

R
e
t
u
r
n
Utilities
Telecommunication
Materials
nformation Technology
ndustrials
ndex
Health Care
Financials
Energy
Consumer Staples Consumer Discretionary
Americas - Sector Attribution
Jul'13 Oct'13 Jan'14 Apr'14 Jul'14
0
2
4
C
S

P
r
im
e

A
P
A
C

C
y
c
D
e
f

R
a
t
io
3.0
3.2
3.4
3.6
3.8
M
S
C

A
s
ia

C
y
c
/
D
e
f
CS APAC CycDef Ratio
MSC APAC CycDef
Ratio
Asia Cyclical to Defensive Stocks (5-day average)
(Equity Long/Short Funds Only)
07/19.. 09/30.. 12/31.. 03/31.. 06/30.. 07/11.. 07/18..
China
Hong Kong
Korea
New Zealand
Australia
Singapore
Japan
ndia
Taiwan
Others
Grand TotaI 21.1%
1.9%
-2.7%
1.4%
10.4%
0.1%
1.3%
0.1%
3.9%
0.2%
4.5%
19.7%
1.9%
-2.7%
1.3%
9.5%
0.2%
1.3%
0.1%
3.7%
0.2%
4.1%
22.8%
1.9%
-2.7%
1.7%
10.7%
0.1%
1.6%
0.1%
4.1%
0.8%
4.3%
27.0%
2.1%
-1.5%
2.2%
12.6%
-0.4%
-0.1%
0.3%
3.6%
1.1%
7.0%
24.0%
2.3%
-2.1%
1.4%
13.3%
-0.4%
-0.2%
0.2%
2.6%
-0.1%
6.9%
17.1%
2.5%
-1.3%
0.3%
8.6%
-0.2%
-1.4%
0.0%
3.3%
1.7%
3.6%
15.9%
2.4%
-1.8%
0.0%
10.9%
0.8%
-0.6%
-0.1%
-0.1%
2.0%
2.3%
Asian Contribution to Net - by Country
(Equity Long/Short Funds Only)
-2% 0% 2% 4% 6%
Contribution to Net
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
M
S
C

A
P
A
C

S
e
c
t
o
r

M
T
D

R
e
t
u
r
n
Utilities
Telecommunication
Materials
nformation Technology
ndustrials
ndex
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Asia - Sector Attribution
n-line Overweight Underweight
Jul'13 Oct'13 Jan'14 Apr'14 Jul'14
2
3
C
S

P
r
im
e

E
u
r
o
p
e

C
y
c
D
e
f

R
a
t
io
1.4
1.6
1.8
M
S
C

E
u
r
o
p
e

C
y
c
D
e
f

R
a
t
io
MSC Eur Cyc/Def Ratio
CS Europe CycDef Ratio
Europe Cyclical to Defensive Stocks (5-day average)
(Equity Long/Short Funds Only)
07/19.. 09/30.. 12/31.. 03/31.. 06/30.. 07/11.. 07/18..
United Kingd..
France
Other Europe
Netherlands
taly
reland
Portugal
Germany
Switzerland
Spain
European n..
Grand TotaI 30.2%
-4.5%
0.8%
0.8%
2.6%
0.1%
3.0%
1.0%
4.5%
0.5%
7.9%
14.2%
28.8%
-4.7%
0.8%
0.7%
2.5%
0.2%
2.5%
0.8%
4.4%
0.3%
7.8%
14.1%
29.1%
-4.9%
0.7%
0.3%
2.4%
0.1%
2.7%
1.1%
5.0%
0.3%
8.0%
14.1%
26.8%
-4.8%
0.5%
0.9%
2.0%
0.1%
2.1%
1.3%
3.3%
1.0%
6.7%
13.5%
32.9%
-2.7%
0.4%
1.4%
1.5%
0.2%
1.9%
1.6%
4.0%
0.5%
8.1%
15.9%
29.0%
-3.4%
0.6%
2.4%
1.4%
-0.1%
1.7%
1.5%
4.1%
0.1%
5.0%
15.8%
28.3%
-2.0%
-0.8%
2.2%
2.5%
-0.1%
2.3%
1.4%
4.8%
-1.1%
5.1%
14.4%
European Contribution to Net - by Country
(Equity Long/Short Funds Only)
Jul 23, 2014
-10% -5% 0% 5% 10% 15%
Contribution to Net
-2%
-1%
0%
1%
2%
M
S
C

E
u
r
o
p
e

S
e
c
t
o
r

M
T
D

R
e
t
u
r
n
Utilities
Telecommunication
Materials
nformation Technology
ndustrials
ndex
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Europe - Sector Attribution
Trading Activity , Crowdedness and Factor Exposures
Definitions
1) Trading Activity: Shows the percentage of
both the long and the short equity book traded
each week. We split this activity into cyclical, de-
fensive and broad index trades. Note sector
ETFs are bucketed to the relevant sector bucket
rather than to the broad indices. Activity for the
broad universe of hedge funds that prime at CS
is shown.
2) WideIy HeId Crowdedness Indicators:
Shows the evolution of exposure to popular and
crowded names for positions held at CS. A pop-
ular name is defined as a name held by at least
20 managers; the vertical axis tracks the median
concentration to popular names of funds on the
CS platform. The lliquidity ndex measures the
market value weighted days trading volume of
the popular names. For this purpose we utilize a
90 day look back.
3) US StyIe Exposure: Shows the average
exposure for this month to the Barra USE4L style
factors for Long/Short clients on the CS platform.
Performance of each factor is quoted to the date
of this report. Factors appearing in the top right
or bottom left quadrant indicate a positive contri-
bution to performance, whereas factors ap-
pearing in the top left or bottom right indicate a
detraction from fund performance. Source Credit
Suisse Prime Services, MSCI Barra
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 4
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
Jul 23, 2014
-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5
Exposure
-1.00%
-0.50%
0.00%
0.50%
1.00%
F
a
c
t
o
r

P
e
r
f
o
r
m
a
c
e

(
M
T
D
)
Size
Residual Volatility
Non-linear Size Non-linear Beta
Momentum
Liquidity
Leverage Growth
Earnings Yield
Dividend Yield
Book-to-Price
Beta
US Style Exposure
1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
lliquidity ndex
24
26
28
30
32
34
M
e
d
ia
n

F
u
n
d

C
o
n
c
e
n
t
r
a
t
io
n
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Elevated Crowd-
edness
High Concentration
Low Liquidity
"Widely-Held" Crowdedness ndicator - Longs
0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6
lliquidity ndex
10
12
14
16
18
20
22
M
e
d
ia
n

F
u
n
d

C
o
n
c
e
n
t
r
a
t
io
n
Aug-13
Sep-13
Oct-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
"Widely-Held" Crowdedness ndicator - Shorts
M
a
y

1
8
-
2
4
M
a
y

2
5
-
3
1
J
u
n
e

1
-
7
J
u
n
e

8
-
1
4
J
u
n
e

1
5
-
2
1
J
u
n
e

2
2
-
2
8
J
u
n
e

2
9
-
J
u
ly
.
.
J
u
ly

6
-
1
2
J
u
ly

1
3
-
1
9
-1.0%
0.0%
1.0%
2.0%
N
e
t

T
r
a
d
e

(
a
s

%

o
f

L
M
V
)
Trading Activity - Longs
Positive - Buying, Negative - Selling
Cyclicals Defensives ndex
M
a
y

1
8
-
2
4
M
a
y

2
5
-
3
1
J
u
n
e

1
-
7
J
u
n
e

8
-
1
4
J
u
n
e

1
5
-
2
1
J
u
n
e

2
2
-
2
8
J
u
n
e

2
9
-
J
u
ly
.
.
J
u
ly

6
-
1
2
J
u
ly

1
3
-
1
9
-1.0%
-0.5%
0.0%
0.5%
N
e
t

T
r
a
d
e

(
a
s

%

o
f

S
M
V
)
Trading Activity Shorts
Positive - Covering, Negative - Shorting
Hedging, Correlation and Dispersion
Broad Index Short Exposure : Shows the proportion of broad index short exposure expressed as percentage of total
short delta exposure across Prime Brokerage, Delta One and Listed Derivatives for Equity Long Short clients on the on the
Prime Services platform
Source : Credit Suisse Prime Services
Downside Protection Factor Shows the proportion of sizble net long hedge funds on the CS platform that exhibit some
element of deep downside protection. Defined as either (1)the ratio of the 20% stress to the 2* 10% stress is less than
90% or (2) fund makes money in the 20% down scenario
Source: Credit Suisse Prime Services
Cross Market Contagion Indicator The cross market contagion indicat or tracks the contagion across equity, credit, rates,
FX and commodity markets by deriving the degree of co-variation across a set of 21 ETFs (AGG, SPY, WM, EEM, EFA,
GLD, USO,UNG, FXE, TLT,EF, PCY, HYG, MCN, SHY, TF, SLV, WD, WF, DBA, LQD)
Sources: Credit Suisse, Bloomberg
S&P 500 SingIe Stock Dispersion The measure tracks the daily cross sectional standard deviation of S&P 500 stock re-
turns normalized by VX. Shown as 5-day average.
Sources: Credit Suisse, Bloomberg
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 5 Souces: Credit Suisse Prime Services, Bloomberg
Mar 11 Jul 11 Nov 11 Mar 12 Jul 12 Nov 12 Mar 13 Jul 13 Nov 13 Mar 14 Jul 14
1.0
1.5
2.0
S
t
o
c
k

D
is
p
e
r
s
io
n
1.5 Standard Deviations
1.5 Standard Deviations
S&P 500 Single Stock Dispersion
Nov 10 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14
50
60
70
C
o
n
t
a
g
io
n

n
d
ic
a
t
o
r
Cross Market Contagion ndicator
Nov 10 May 11 Nov 11 May 12 Nov 12 May 13 Nov 13 May 14
0.0
0.2
0.4
0.6
0.8
1.0
0.0
0.2
0.4
0.6
0.8
1.0
mplied
Realized
SPX 1- Month Correlation
Jul 23, 2014
Jan 1, 13 Apr 1, 13 Jul 1, 13 Oct 1, 13 Jan 1, 14 Apr 1, 14 Jul 1, 14
10.0%
15.0%
20.0%
B
r
o
a
d

n
d
e
x

S
h
o
r
t

E
x
p
o
s
u
r
e
Broad ndex Short Exposure
Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14
10%
15%
20%
25%
%

o
f

F
u
n
d
s
1 Decile
2 Decile
3 Decile
4 Decile
Median
6 Decile
7 Decile
8 Decile
9 Decile
Downside Protection Factor
Markets Stress ndicators
1) PopuIar HoIdings - The 50 most popular single name equity positions (by number of hedge fund managers holding) across
the Credit Suisse Prime Services platform. The return is calculated by looking at an equal weighted basket that is rebalanced
daily. The baskets are not investible.
2) Credit Indices US investment grade - 5-yr generic CDX G ndex, Europe investment grade - 5-yr generic TRAXX index,
US High Yield - 5-yr generic CDX index, EUR HY Yield 5-yr CDS Cross Over ndex (for Europe)
3) Funding Measures
- EURBOR vs EONA: 1-month forward pay on EONA to receive FRA of 3M Euribor.
- Libor vs OS: The spread between 3M LBOR and the 3M Overnight ndex Swap.
- USD 2-yr Swap spread: Spread over 2yr US Treasury yield where the floating leg is 3M LBOR.
- EUR 2-yr Swap spread: Spread over 2yr Bund yield where the floating leg is 3M EURBOR.
- FX Basis Swap Euro-USD: 3M
- ECB Dollar Auction: Total bid amount from the ECB 3M dollar auctions.
Source: Credit Suisse Prime Services, Bloomberg
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 6
Description Current
Pct of 52
Week Range
30 Day
Volatility
Week MTD YTD


.MSC WORLD 1,744.3 93% 6.6%
U
S
NASDAQ 4,432.1 94% 10.3%
SPX 1,978.2 98% 7.6%
SPX Cyclical Contribution
SPX Defensive Contribution
RUSSELL 2000 1,151.6 71% 12.9%
DJA 17,100.2 98% 7.1%
VX ndex 12.1 16% 134.7%
E
u
r
o
p
e
DAX 9,720.0 84% 11.5%
FTSE 100 6,749.5 76% 8.9%
STOXX 50 3,164.2 75% 12.9%
STOXX Europe 600 339.7 81% 10.1%
VSTOXX NDEX 16.5 34% 108.7%
A
s
ia
SHANGHA SE COMPOSTE 2,059.1 30% 9.6%
HANG SENG 23,454.8 80% 10.4%
NKKE 225 15,215.7 64% 11.1%
F
ix
e
d

n
c
o
m
e
CS High Yield ndex 1,243.7 95% 1.7%
CS Liquid US Treasury ndex (1Y-3Y) 225.2 87% 0.5%
CS Liquid US Treasury ndex (7Y-10.. 345.7 98% 3.7%
CS Liquid US Treasury ndex (20Y+) 442.8 100% 9.0%
Crude WT 103.1 61% 14.2%
H
F
R
HFRX Global Hedge Fund 1,242.6 84% 2.6%
HFRX Equity Hedge 1,177.2 86% 4.0%
HFRX Relative Value 1,213.0 71% 1.4%
HFRX Event Driven 1,641.4 91% 3.4%
HFRX Macro 1,125.9 48% 4.1%
C
S
Top 50 US Popular Longs 99% 9.8%
Top 50 US Popular Shorts 6% 9.4%
Top 50 Europe Pop Longs 48% 11.2%
Top 50 Europe Pop Shorts 45% 11.5%
CS Multi Asset Futures Strategy 4,433.9 65% 2.7%
C
S

L
iq
u
id
A
lt
e
r
n
a
t
iv
e
B
e
t
a
CSLAB Event Driven 1,437.1 83% 3.0%
CSLAB ndex 1,220.3 92% 2.7%
CSLAB Long Short 1,310.0 93% 5.3%
CSLAB Managed Futures 903.8 33% 4.2%
CSLAB Merger Arbitrage 1,140.8 24% 3.6%
5.0% 0.0% 0.5%
6.1% 0.5% 0.4%
7.0% 0.9% 0.5%
4.8% 0.8% 0.6%
2.3% 0.2% -0.1%
-1.0% -3.5% -0.7%
3.2% 1.6% 0.9%
-12.1% 4.2% -0.2%
1.8% -1.1% 0.6%
0.0% 0.1% 0.9%
1.8% -2.0% 0.2%
3.5% -0.6% 0.8%
-4.2% 8.3% 1.2%
-2.7% 0.5% 0.6%
0.6% 1.1% 1.0%
-6.6% 0.4% 0.3%
5.3% -0.4% -0.3%
0.4% -0.1% -0.1%
5.6% 0.3% 0.2%
14.7% 1.0% 0.9%
4.8% -2.1% 2.3%
1.4% -0.4% 0.2%
1.0% -0.3% 0.4%
0.8% -0.8% -0.3%
4.1% -0.3% 0.3%
-0.7% 0.1% 0.2%
7.2% 1.5% 1.2%
-7.9% 0.2% -0.6%
-2.1% -2.0% 0.4%
-0.3% 1.9% -0.6%
-0.4% -0.3% -0.1%
2.1% -1.0% -0.4%
1.9% -0.4% -0.1%
3.9% 0.1% 0.2%
-3.8% 0.6% 0.1%
-2.0% 0.6% 0.1%
Markets, Hedge Fund Returns and Factors
as of July 18, 2014
Feb 14 Apr 14 Jun 14
50
100
V
a
lu
e
G US
G Europe
Credit Spreads G
Feb 14 Apr 14 Jun 14
100
200
300
400
V
a
lu
e
HY US
HY Europe
Credit Spreads HY
Feb 14 Apr 14 Jun 14 Aug 14
0
10
20
V
2
X

n
d
e
x
0
10
20
V

n
d
e
x
VSTOXX
VX
mplied Volatility ndices
Feb 14 Apr 14 Jun 14
-100
-50
0
V
a
lu
e
0.0
0.1
0.2
B
illio
n
s
FX Basis Swap &
ECB 3M Dollar Auction Bid
Sep 13 Dec 13 Mar 14 Jun 14
0.00
0.05
0.10
0.15
V
a
lu
e
LBOR vs. OS
EURBOR vs. EONA
Funding Stress ndicators
Feb 14 Apr 14 Jun 14
0
10
20
30
V
a
lu
e
US 2yr Swap Spread
EUR 2yr Swap Spread
Swap Spreads
5
y

C
D
S
s
p
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e
a
d
Y
ie
ld
P
c
t

o
f

9
0
D
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C
D
S
R
a
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e
5
-
y
r

m
p
lie
d
D
e
f
a
u
lt
P
r
o
b
Portugal
talian
Spain
reland
Belgium
France
Germany 2%
4%
4%
5%
6%
9%
16%
91%
69%
89%
34%
30%
42%
76%
0.7
0.9
1.0
1.2
1.7
2.0
3.2
23
43
42
51
72
101
192
Sovereign Yields
5
y

C
D
S
s
p
r
e
a
d
P
c
t

o
f

9
0
D
a
y

C
D
S
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a
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e
5
-
y
r

m
p
lie
d
D
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f
a
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lt

P
.
.
Societe Generale SA
Deutsche Bank AG
Goldman Sachs Group
Bank of America Corp
Morgan Stanley
Barclays Bank PLC
BNP Paribas SA
Credit Suisse Group A..
JPMorgan Chase & Co
UBS AG 4%
5%
5%
6%
6%
6%
6%
7%
7%
8%
54%
97%
59%
57%
67%
73%
100%
61%
91%
60%
48
59
59
67
68
72
72
77
78
83
Bank CDS
Jul 23, 2014
Credit Suisse Hedge Fund Index Returns - The tables show the perfor-
mance of the index and the sub strategy indices for the current period, cur-
rent year and the trailing 12 months. For the current month we show the per-
formance of the index relative to the prior 10 years. For the year-to-date num-
bers the index return (which is NAV weighted) and the performance of the
bottom and top quartile managers is shown.
Dispersion of YTD Manager Returns: The chart shows the return dis-
persion of the constituent managers for each of the Credit Suisse Hedge
Fund ndex Sub-strategies. The top and bottom of the box represent the 25th
and 75th percentile of manager returns; the length of the line represents the
10th and 90th percentile respectively. The red lines represent the median
manager returns.
HFRI Index Performance - Shows current month and ytd return for each of
the HFR strategy indices.
Credit Suisse Asset Management, HFR
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 7
Hedge Fund ndex Returns
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON..
ndex Jun
Percentile
vs. 10-yr
History
June
Bottom
Quartile ..
June Top
Quartile
Return
Manager
Dispersion
Rank
ED Multi-Strategy
Event Driven (ED)
Managed Futures
ED Distressed
ED Risk Arbitrage
Emerging Markets
Long/Short Equity
Hedge Fund ndex
Equity Market Neutr..
Global Macro
Multi-Strategy
Fixed ncome Arbitr..
Convertible Arbitrage
Dedicated Short Bias
S&P 500
MSC World
CS High Yield ndex
CS Liquid US Treas..
32.9%
18.5%
18.3%
26.8%
15.3%
65.9%
9.2%
28.5%
25.7%
3.0%
37.1%
-2.8%
0.6%
1.0%
1.3%
1.5%
1.6%
1.8%
2.0%
2.2%
1.7%
1.7%
2.4%
2.3%
2.7%
-5.1%
-0.2%
0.2%
0.0%
-0.5%
-0.6%
-0.2%
-0.5%
-0.1%
0.7%
0.8%
0.3%
0.8%
0.8%
33.9%
45.8%
55.0%
62.3%
17.5%
35.8%
40.8%
40.8%
44.2%
61.7%
55.8%
50.0%
52.5%
85.8%
62.5%
64.2%
74.2%
72.5%
-0.1%
0.9%
1.6%
1.9%
-4.8%
0.0%
0.4%
0.4%
0.5%
0.7%
1.0%
1.0%
1.1%
1.3%
1.4%
1.5%
1.7%
1.8%
CS Hedge Fund ndex
(June 2014)
H
e
d
g
e

F
u
n
d

n
d
e
x
M
a
n
a
g
e
d
F
u
t
u
r
e
s
F
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e
d

n
c
o
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e
A
r
b
it
r
a
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e
G
lo
b
a
l
M
a
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o
C
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v
e
r
t
ib
le
A
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b
it
r
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e
M
u
lt
i
S
t
r
a
t
e
g
y
D
e
d
ic
a
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e
d
S
h
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t

B
ia
s
E
m
e
r
g
in
g
M
a
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k
e
t
s
E
v
e
n
t

D
r
iv
e
n
E
q
u
it
y

M
a
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k
e
t
N
e
u
t
r
a
l
L
o
n
g
S
h
o
r
t
E
q
u
it
y
-10%
-5%
0%
5%
10%
-10%
-5%
0%
5%
10%
Dispersion of Monthly Manager Returns (YTD to June)
June May Apr YTD
E
q
u
it
y

H
e
d
g
e
HFR EH: Sector - Energy/Basic Material..
HFR EH: Sector - Technology/Healthcar..
HFR Equity Hedge (Total) ndex
HFR EH: Quantitative Directional ndex
HFR EH: Equity Market Neutral ndex
HFR EH: Short Bias ndex
E
v
e
n
t
D
r
iv
e
n
HFR Event-Driven (Total) ndex
HFR ED: Distressed/Restructuring ndex
HFR ED: Merger Arbitrage ndex
M
a
c
r
oHFR Macro: Systematic Diversified ndex
HFR Macro (Total) ndex
R
e
la
t
iv
e

V
a
lu
e
HFR RV: Yield Alternatives ndex
HFR RV: Fixed ncome-Corporate ndex
HFR Relative Value (Total) ndex
HFR RV: Fixed ncome-Asset Backed n..
HFR RV: Multi-Strategy ndex
HFR RV: Fixed ncome-Convertible Arbi..
E
m
e
r
g
in
g

M
a
r
k
e
t
sHFR Emerging Markets: Russia/Eastern..
HFR Emerging Markets: Latin America ..
HFR Emerging Markets: Asia ex-Japan ..
HFR Emerging Markets (Total) ndex
HFR Emerging Markets: Global ndex
-3.1%
1.5%
2.7%
3.3%
4.7%
11.6%
1.1%
0.4%
-0.2%
-0.8%
-3.9%
0.9%
-1.3%
0.2%
1.3%
1.2%
0.9%
1.0%
-1.6%
-0.3%
1.1%
1.7%
3.4%
4.2%
1.9%
5.4%
4.4%
-0.1%
0.2%
0.1%
0.5%
0.9%
0.9%
0.8%
1.4%
1.4%
0.9%
0.1%
0.0%
0.0%
0.6%
1.0%
0.6%
0.7%
3.5%
3.2%
5.7%
4.8%
4.8%
11.6%
0.2%
0.3%
0.8%
0.6%
0.7%
1.4%
0.4%
0.7%
0.7%
0.8%
1.0%
2.3%
0.6%
0.7%
0.8%
0.9%
0.9%
3.6%
3.7%
2.8%
3.4%
2.3%
-1.4%
0.4%
0.0%
-1.0%
1.3%
-0.9%
2.1%
2.2%
2.2%
0.7%
4.8%
0.9%
1.4%
1.7%
2.1%
3.1%
HFR ndex Performance
ndex YTD
Trailing 12
month
Sharpe
Bottom
Quartile
YTD
Top
Quartile
YTD
ED Distressed
Event Driven (ED)
ED Multi-Strategy
Fixed ncome Arbitrage
Multi-Strategy
Convertible Arbitrage
Long/Short Equity
Hedge Fund ndex
ED Risk Arbitrage
Global Macro
Managed Futures
Equity Market Neutral
Emerging Markets
Dedicated Short Bias
S&P 500
CS High Yield ndex
MSC World
CS Liquid US Treasury T..
-6.3%
6.8%
1.5%
2.9%
4.0%
3.9%
5.6%
4.6%
3.5%
4.7%
6.8%
7.8%
6.5%
6.5%
-9.3%
-3.7%
-2.1%
-3.2%
-4.5%
1.9%
-2.1%
-2.3%
0.5%
0.5%
1.2%
3.7%
3.1%
1.3%
0.3
1.5
1.6
1.8
-2.1
1.0
1.4
0.2
1.1
3.5
2.5
2.5
1.9
3.6
3.4
3.3
3.8
4.6
2.8%
5.0%
5.7%
6.1%
-6.4%
-0.1%
-0.5%
0.6%
0.9%
3.1%
2.8%
3.1%
2.3%
2.9%
3.4%
5.4%
5.8%
6.4%
CS Hedge Fund ndex
YTD
Jul 23, 2014
FOP lNSTlTTlONAL lNvESTOPS ONLY: NOT FOP ONWAPD DlSTPlBTlON
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 8
Asset Flows
Hedge Fund Assets and FIows
Source: HFR.
WeekIy ETF and MutuaI Fund FIows
Source: nvestment Company nstitute and CS Portfolio Strategy
40 Act FundsAssets and FIows
Source: Morningstar Direct
Q
2

2
0
0
9
Q
3

2
0
0
9
Q
4

2
0
0
9
Q
1

2
0
1
0
Q
2

2
0
1
0
Q
3

2
0
1
0
Q
4

2
0
1
0
Q
1

2
0
1
1
Q
2

2
0
1
1
Q
3

2
0
1
1
Q
4

2
0
1
1
Q
1

2
0
1
2
Q
2

2
0
1
2
Q
3

2
0
1
2
Q
4

2
0
1
2
Q
1

2
0
1
3
Q
2

2
0
1
3
Q
3

2
0
1
3
Q
4

2
0
1
3
Q
1

2
0
1
4
Q
2

2
0
1
4
.00T
1.00T
2.00T
3.00T
A
s
s
e
t
s
Total Hedge Fund ndustry Assets Globally
Strategy
Equity Hedge
Event Driven
Macro
Relative Value
Q
2

2
0
0
9
Q
3

2
0
0
9
Q
4

2
0
0
9
Q
1

2
0
1
0
Q
2

2
0
1
0
Q
3

2
0
1
0
Q
4

2
0
1
0
Q
1

2
0
1
1
Q
2

2
0
1
1
Q
3

2
0
1
1
Q
4

2
0
1
1
Q
1

2
0
1
2
Q
2

2
0
1
2
Q
3

2
0
1
2
Q
4

2
0
1
2
Q
1

2
0
1
3
Q
2

2
0
1
3
Q
3

2
0
1
3
Q
4

2
0
1
3
Q
1

2
0
1
4
Q
2

2
0
1
4
-40B
-20B
B
20B
F
lo
w
s
Hedge Fund Flows
D
e
c
-
0
8
M
a
r
-
0
9
J
u
n
-
0
9
S
e
p
-
0
9
D
e
c
-
0
9
M
a
r
-
1
0
J
u
n
-
1
0
S
e
p
-
1
0
D
e
c
-
1
0
M
a
r
-
1
1
J
u
n
-
1
1
S
e
p
-
1
1
D
e
c
-
1
1
M
a
r
-
1
2
J
u
n
-
1
2
S
e
p
-
1
2
D
e
c
-
1
2
M
a
r
-
1
3
J
u
n
-
1
3
S
e
p
-
1
3
D
e
c
-
1
3
M
a
r
-
1
4
0B
50B
100B
150B
200B
T
o
t
a
l
A
s
s
e
t
s

(
U
S
D
)
Liquid Alternatives (40 Act) - Total Assets
2009 2010 2011 2012 2013 2014
-5B
0B
5B
10B
15B
20B
25B
T
o
t
a
l
F
lo
w
s

(
U
S
D
)
Liquid Alternatives (40 Act) - Flows
Strategy
Market Neutral
Long/Short Equity
Managed Futures
Multialternative
Nontraditional Bond
Aug 13 Nov 13 Feb 14 May 14 Aug 14
-$20B
-$15B
-$10B
-$5B
$0B
$5B
$10B
$15B
$20B
Weekly ETF Flows
Equity Fixed ncome SPY
Aug 13 Oct 13 Dec 13 Feb 14 Apr 14 Jun 14
-$10B
-$5B
$0B
$5B
$10B
Weekly Mutual Fund Flows
US Equity Global Equity Fixed ncome
Jul 23, 2014
Capital Services
- lnvestor activity levels remain high, with all indications for significant inflows to continue going forward.
- Pecent CS Capital Services Mid-Year Survey indicates likely increased levels of allocations in second half of this year.
- Survey results also show strongest demand for Event-Driven and Equity Long/Short strategies by a wide a margin.
- Within Event-driven strategies, investors continue to focus on Activist & Merger Arbitrage strategies in particular.
- Also noting a rebound in interest for Emerging Markets strategies, though still too early for significant fund flows.
- Pegionally, investors are actively evaluating opportunities based on the ongoing economic recovery in Europe.
- lnterest in Global Macro remains highly selective, with investors struggling to find manager options with competitive returns.
- lnvestors remain bearish on CTA/Managed Futures funds, though some interest returning for Commodities focused funds.
- Pension funds and family offices continue to be most active allocators at this stage and remain major drivers of inflows again this year.
- Capacity remains a concern for many institutional investors, as some funds close or restrict new inflows.
- Some large allocators continue to express an interest in seeing co-investment opportunities from their fund managers.
- Petail capital continues to flow to '40 Act Funds, with almost $40 billion raised over the past year.
FOR NSTTUTONAL NVESTORS ONLY: NOT FOR ONWARD DSTRBUTON
PLEASE FlND lMPOPTANT LEGAL lNFOPMATlON ON LAST PAGE 9
Jul 24, 2014
Strategy US Asia EUR
Commodities
Convertible Bond Arbitrage
Credit - Distressed and/or Deep Value
Credit - Multi-Strategy
Credit - RV and/or Liquid
CTA
Emerging Market Credit
Emerging Market Equities
Equity L/S - Fund. / Longer Bias
Equity L/S - Fund. / Market Neutral
Equity L/S - Fund. / Variable Bias
Equity L/S - Quant. Market Neutral
Equity L/S - Trading
Event Driven
Fixed ncome Arbitrage
Global Macro
Multi-Strategy
Niche / Exotic
nvestor Strategy Sentiment (June 2014)
(Positive Sentiment Neutral Sentiment Negative Sentiment )
Rank US Asia EUR
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Niche / Exotic
Niche / Exotic
Niche / Exotic
Multi-Strategy
Multi-Strategy
Multi-Strategy
Global Macro
Global Macro Global Macro
Fixed ncome Arbitrage
Fixed ncome Arbitrage
Fixed ncome Arbitrage
Event Driven
Event Driven
Event Driven
Equity L/S - Trading
Equity L/S - Trading
Equity L/S - Trading
Equity L/S - Quant. Market Neutral
Equity L/S - Quant. Market Neutral Equity L/S - Quant. Market Neutral
Equity L/S - Fund. / Variable Bias Equity L/S - Fund. / Variable Bias Equity L/S - Fund. / Variable Bias
Equity L/S - Fund. / Market Neutral
Equity L/S - Fund. / Market Neutral
Equity L/S - Fund. / Market Neutral
Equity L/S - Fund. / Longer Bias
Equity L/S - Fund. / Longer Bias
Equity L/S - Fund. / Longer Bias
Emerging Market Equities
Emerging Market Equities
Emerging Market Equities
Emerging Market Credit
Emerging Market Credit Emerging Market Credit
CTA
CTA
CTA
Credit - RV and/or Liquid
Credit - RV and/or Liquid
Credit - RV and/or Liquid
Credit - Multi-Strategy
Credit - Multi-Strategy
Credit - Multi-Strategy
Credit - Distressed and/or Deep V..
Credit - Distressed and/or Deep V.. Credit - Distressed and/or Deep V..
Convertible Bond Arbitrage
Convertible Bond Arbitrage Convertible Bond Arbitrage
Commodities
Commodities Commodities
nvestor Strategy Sentiment (Jun 2014)
(Positive Sentiment Neutral Sentiment Negative Sentiment )
CONTACTS AND DISCLAIMER


10
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Mark Connors +1-212-325-3049 mark.connors@credit-suisse.com Shannon Murphy +1 212 538 0416 shannon.murphy@credit-suisse.com
Tushar Kaul +1 212 325 1633 tushar.kaul@credit-suisse.com
Jon Light
+44 20 7888 5811
jonathan.light@credit-suisse.com
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michael.wingertzahn@credit-suisse.com
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parshu.shah@credit-suisse.com
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dwight.skerritt@credit-suisse.com
Walker Layne +1 212 325 3715 walker.layne@credit-suisse.com Greg Sherry +1 212 325 5847 greg.sherry@credit-suisse.com
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Victor Lin +1-415-836-7643 victor.lin@credit-suisse.com Mandu Xu +1-212-325-9628 mandy.xu@credit-suisse.com
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Michael Valentinas +1-312-345-6178 michael.valentinas@credit-suisse.com Jon Kinderlerer +1-212-325-1394 jon.kinderlerer@credit-suisse.com
David Rones +1-212-325-2427 david.rones@credit-suisse.com Mark Connors +1-212-325-3049 mark.connors@credit-suisse.com
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