Hedge Fund Returns Best Since 2003, Says Greenwich

by Phillip Morton, Investors Offshore.com

20 November 2007

The Greenwich Global Hedge Fund Index returned 3.01% in October, representing its strongest month since January 2006 and, on a year-to-date basis, the best performance for the first ten months of the year since 2003.

Hedge fund tracker, Greenwich Alternative Investments announced in its monthly performance update that the GGHFI’s year-to-date return of 12.39% is on a par with the MSCI World Equity Index (YTD: 12.75%), and ahead of the S&P 500 (YTD: 10.86%) and FTSE 100 (YTD: 8.06%).

“Based on results so far, October’s widespread consistency of performance across strategies has hit its strongest level since 2003, with all four Strategy Groups’ October returns at their highest since January 2003, or before,” noted Ben Rossman, Senior Vice President. “The Directional Trading Group surged +4.48% in October, up +10.76% YTD. Following the Group’s +3.90% September rally, October’s surge marks what will go down as one of the larger two-month recoveries.”

The Specialty Strategies Group returned 3.63% in October, for a year-to-date return of 18.36%. The Long-Short Equity Group followed, up 2.92% in October and 13.24% for the year. The Market Neutral Group had its strongest month since January 2006, yielding 2.00% in October and 9.06% for the year.

All 18 individual strategies tracked by the GGHFI ended October in positive territory and are positive for the year, including dedicated short sellers, who managed to gain 0.16% in October amid rising equity markets, and are up 0.97% for the year. The October Index currently includes 988 funds.

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