Greenwich Hedge Index Results For March And Q1

by Carla Johnson, Investors Offshore, London

17 April 2007

The Greenwich Global Hedge Fund Index returned +0.87% in March, closely followed by the Greenwich Investable Index which returned +0.86%. The Greenwich Investable Index has continued to achieve its investment objective of closely tracking the Global Index, posting year-to-date returns of +2.62% - within nine basis points of the Global Index, which is up +2.71% through Q1 '07.

Year-to-date, both Greenwich Indices have outperformed market benchmarks. The S&P 500, MSCI World Equity, FTSE 100, and Lehman Brothers Aggregate Bond indices posted March returns of +1.12% (+0.64% Q1), +1.59% (+2.06%
Q1), +2.21% (+1.40% Q1), and 0.00% (+1.50% Q1), respectively.

In March, roughly 84% of hedge funds had positive returns, says Greenwich. Through Q1 '07, 16 of 18 strategies followed by the Greenwich Global Hedge Fund Index outperformed the S&P 500, the two exceptions being Futures and Short Selling, which together represent roughly 10% of funds in the Global Index.

Market Neutral strategies were positive for the 17th consecutive month. Event-Driven managers capitalized on continued strength in M&A activity, returning +1.18% in March and +4.63% year-todate. Long-Short Equity strategies captured the upside across global equity markets, yielding +1.26% for the month and +3.17% year-to-date. March proved to be a difficult month for Futures managers, who were unable to recover from volatility early in the month, to end March down -1.64%.

The Specialty Strategies Group gained +1.44% (+3.67 Q1). Emerging managers led amid widespread strength across global emerging markets, returning +2.07% in March and +4.11% year-to- date. The Greenwich Global Multi-Strategy and Income strategies returned +1.00% (+3.64% Q1) and -0.61% (+1.33% Q1), respectively. The Long-Short Equity Group returned +1.26% (+3.17% Q1). The Greenwich Global Value, Opportunistic, Aggressive Growth, and Short Selling strategies returned +1.38% (+3.36% Q1), +1.26% (+3.37% Q1), +1.17% (+2.82% Q1), and -0.42% (-0.39% Q1), respectively.

The Market Neutral Group was up +1.02% in March, for a year-to-date return of +3.54%. The Greenwich Global Equity Market Neutral, Event-Driven, and Market Neutral Arbitrage strategies returned +1.26% (+2.80 Q1), +1.18% (+4.63% Q1), and +0.77% (+3.03% Q1), respectively. The Directional Trading Group was down -0.81%, for year-to-date returns of -0.84%. The Market Timing, Macro, and Futures strategies returned +0.67% (+1.41% Q1), +0.32% (+1.21% Q1), and - 1.64%(-2.32% Q1), respectively.

Thus far, the March Index includes 1,025 funds. Final Index results will be posted at www.greenwichai.com at the end of April, after additional funds have submitted returns.

The Greenwich Investable Index, comprising 51 funds, adds investability, active management and liquidity to the diversification and performance benefits of the broad Greenwich Global Hedge Fund Index. It references actual hedge funds vehicles as opposed to separately managed accounts used to attempt to replicate the returns of hedge fund vehicles. Since its inception in January 2003, the Investable Index has achieved an annualized return of +10.70% versus +11.64% for the Greenwich Global Hedge Fund Index. The Investable Index has a correlation of 0.95 and beta of 0.90 to the Global Hedge Fund Index and is reported monthly net of a 0.04% Index calculation fee.

Greenwich Alternative Investments, LLC (and its affiliates) manages one of the world's largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services and research to institutional investors worldwide. Further information is available at www.greenwichai.com.

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