Hedge Fund Investors Have Another Disappointing Month

by Carla Johnson, Investors Offshore.com

11 July 2006

The Greenwich-Van Global Hedge Fund Index returned -0.60% in June according to a preliminary report released today by Greenwich-Van Advisors, LLC, a leading hedge fund index provider.

“Hedge funds had another difficult month in June albeit not to the degree of May,” noted Wade McKnight, Vice President of Greenwich-Van.

He continued: “Aggregate hedge fund returns were primarily affected by the continued global equity market decline which began in May and persisted into June. Most traditional benchmarks were in negative territory throughout June until the last couple of trading days, at which point many markets rebounded strongly. Many hedge fund managers reduced exposure during recent weeks and were not able to fully participate in the broad market rally near the end of June."

In comparison, the S&P 500, NASDAQ, Dow Jones Europe Stoxx Index, and the Lehman Brothers Aggregate Bond Index returned 0.14%, -0.31%, 0.73%, and 0.21%, respectively.

According to Mr McKnight, futures managers and emerging market managers suffered most in June, while short sellers delivered good results as equity markets slipped.

The June 2006 Greenwich-Van Global Hedge Fund Index preliminary results included 327 funds. An updated June return for the Index, based on a larger sample of funds, will be released in mid- July.

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