Early Indications Show A Monthly Decline In MSCI Hedge Fund Index

by Carla Johnson, Investors Offshore.com

17 August 2004

For the month of July, the early reporting funds in the MSCI Hedge Fund Composite Index returned -0.6%, with 57% of funds reporting.

The performance of the MSCI Hedge Fund Composite Index is comprised of five Process Group Indices:

The Directional Trading Index, based upon speculating on the direction of market prices of currencies, commodities, equities, and bonds in the futures and cash markets, declined 0.8%.

The Relative Value Index, which focuses on spread relationships between pricing components of financial assets or commodities, rose by 0.2% in July.

The Security Selection Index, combining long positions and short sales, fell back 1.1% last month.

The Specialist Credit Index, funds which lend to credit-sensitive issuers, registered a small increase of 0.2%

Finally, the Multi-Process Indices which practice a strategy whereby a single investment process does not account for more than 80% of their risk capital, fell back 0.4%.

In addition, The MSCI World Equity Index fell by 3.3% in July while the MSCI World Sovereign Debt Index declined by 0.5%, the firm reported.

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