Greenwich Hedge Fund Index Rebounds Amid Declining Markets

by Phillip Morton, Investors Offshore.com

19 March 2008

The Greenwich Global Hedge Fund Index (GGHFI) returned 2.21% in February, rebounding from January’s -2.79% worst return since 2002, Greenwich Alternative Investments has announced.

The S&P 500 and MSCI World Equity posted negative returns of -3.32% and -0.74% respectively, while the FTSE 100 gained 0.08%. All hedge fund strategy groups ended the month with gains.

“February’s rebound in the midst of market uncertainty continues to highlight the diversification benefits of hedge funds,” noted Margaret Gilbert, Greenwich Managing Director.

Directional Trading Group’s 5.48% return was the strongest, driven largely by futures managers who capitalized on volatile commodities markets posting a February gain of 7.2%. Long-Short Equity Group strategies also benefited from choppy equity markets, gaining 1.28%.

For the second month in a row, dedicated short sellers were the top performers in this group, gaining 4.12% on the month. The Specialty Strategy Group returned 2.74% on average, led by Emerging Markets, which rebounded 4.4% after its January decline.

The Market Neutral Group was the weakest, but still managed to show an average return of 1.11%.

February’s GGHFI currently includes 1,091 constituent funds. Final February results will be posted by Greenwich in early March, once additional funds have submitted returns.

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