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Wednesday, December 3, 2014

Fund manager Okumura to oversee Credit Suisse Brazil volatility fund, (NYSE: CS)

Credit Suisse Group AG plans to open a hedge fund in Brazil called Gauss next year to offer new investment alternatives for clients, such as volatility arbitrage, executives said on Wednesday.The hedge fund, named after "the prince of mathematicians" Carl Gauss, will be managed by Fabio Okumura, former head of proprietary trading at Ita� Unibanco Holding SA, whom Credit Suisse hired in March. The fund should begin raising money next year, said Jos� Olympio Pereira, Credit Suisse's chief executive in Brazil.Okumura started Gauss' trial "long vol" fund in October with proprietary money from Credit Suisse and employees to "build some track record," he told Reuters at the sidelines of a S�o Paulo event. Usually, long vol funds use projections for risk and returns generated by their proprietary trading models to assume a long position on an option when market uncertainty mounts, and the opposite if turbulence eases.The hedge fund will target returns close to 150 percent of Brazil's benchmark CDI interbank rate, which is at about 11 percent now, and 4.5 percent volatility, he said. The CDI is currently at about an annual 11.1 percent.

Credit Suisse Group AG is a Switzerland-based holding company engaged in private banking, investment banking and asset management areas. Shares of CS traded higher by 0.45% or $0.12/share to $26.78. In the past year, the shares have traded as low as $24.82 and as high as $33.25. On average, 1193400 shares of CS exchange hands on a given day and today's volume is recorded at 433042.