January Losses Slow Early Momentum in Commodities Space

January Losses Slow Early Momentum in Commodities Space
New York, February 9, 2009 Despite the positive momentum that began in early January, the
continued lack of clarity on global economic initiatives drove commodities prices back to mid-
December levels last month.
Despite January losses (the Dow Jones AIG Commodity Index finished down 5.38%), many believe the
reversion of commodities prices to stable levels could signal an early sign of recovery. Andrew Karsh, Co-
Lead Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, said, “At this point, with
many potential inflationary factors lingering on the horizon, price stability could represent the initial recovery
phase of what could become an extraordinary year for the commodities markets.”
Co-Lead Portfolio Manager, Chris Burton, added, “Energy in particular has the potential for near term
gains. Between OPEC’s decision to cut production, and the possibility of a US refinery strike, there is the
potential for a supply shock that could positively impact the petroleum group.” Burton went on to say,
“Natural gas is another member of the energy sector that could have some near term upside. After falling
more than 20% in January and reaching its lowest price since 2006, we believe that current prices may
represent a strong value, especially if demand during the end of the winter heating season is above
expectations.”
Despite overall losses in January, several commodities posted healthy returns for the month. Gasoline was
the month’s strongest performer, gaining 14.36%, while silver experienced returns of 11.26%, extending
the gains of the previous two months amid continued investor flight to the safety of precious metals.
Natural Gas suffered the most, falling 21.91%.
About the Credit Suisse Total Commodity Return Strategy
Credit Suisse’s Total Commodity Return Strategy has been managed for fourteen years and seeks to
outperform the return of a commodities index, such as the Dow Jones – AIG Commodity Index Total
Return or the S&P GSCI Total Return Index, using a quantitative commodity research process. Commodity
index total returns are achieved through:
• Spot Return: price return on specified commodity futures contracts
• Roll Yield: impact due to migration of futures positions from near to far contracts
• Collateral Yield: return earned on collateral for the futures
About the Portfolio Managers
Christopher Burton, CFA, and Andrew Karsh are Co-Lead Portfolio Managers of the Credit Suisse Total
Commodity Return Strategy. As of December 31, 2008 the team managed approximately US$1.6 billion
in assets globally.
Media Release
February 9, 2009
Page 2/2
Contact Information
Tamsin Chance, Corporate Communications, tel +212 325 1863, tamsin.chance@credit-suisse.com
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