Greenwich-Van Hedge Fund Index Goes Sideways In September

by Carla Johnson, Investors Offshore, London

20 October 2006

The Greenwich-Van Global Hedge Fund Index returned +0.01% in September (+6.55% YTD), according to Greenwich-Van Advisors, LLC. By comparison, the S&P 500, Lehman Brothers Aggregate Bond Index, MSCI World Equity Index and FTSE 100 returned +2.58% (8.53% YTD), +.88% (+3.06% YTD), +1.22% (+11.23% YTD), and +.93% (+6.09% YTD), respectively.

Greenwich-Van says that despite the advance in equities last month, the Macro-Managers group is presenting a mixed view for October; as 43% are bearish, 36% bullish and 21% expect equities to remain unchanged. The Managers have backed off their bullish stance on the US Dollar to present a mixed outlook for October, as 36% expect the dollar to move higher vs. 36% lower and 28% unchanged. Lastly, the group anticipates the strong rally in the 10-year bond will continue into October, as 50% are bullish vs. 29% bearish.

The Greenwich-Van Hedge Fund Research Update is published monthly on or around the 10th business day as a service to institutions, plan sponsors, consultants, individual investors, fund managers and the financial services industry. The Greenwich-Van Global Hedge Fund Indices, have been published since 1995 and are among the industry's oldest and most widely utilized composite benchmarks of the entire hedge fund universe.

The Greenwich-Van Investable Hedge Fund Indices are an additional series of hedge fund benchmarks designed to represent expected performance of 'investable' hedge funds that are open and considered suitable for institutional investment. Both indices are updated monthly and calculated as simple averages (not dollar weighted averages) based on underlying hedge fund returns that are net of manager fees and do not include fund-of-funds. Index returns are finalized on the last business day of the month and published on Greenwich-Van's website www.vanhedge.com as the Month-End return.

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