Hedge Funds Rode Out Choppy February Equity Markets

by Phillip Morton, Investors Offshore.com

08 March 2007

The Greenwich Global Hedge Fund Index withstood February’s choppy equity markets and returned 0.58% for the month, according to a preliminary report released by Greenwich Alternative Investments, LLC, a leading hedge fund index provider.

By comparison, the S&P 500, the MSCI World Equity Index, and the FTSE 100 were all down last month, by -1.96% (-0.48% YTD), -0.65% (+0.46% YTD), -0.51% (- 0.79% YTD) respectively. The Lehman Aggregate Bond Index finished the month up 1.54%.

“Hedge funds’ February gain demonstrates their diversification benefits for investors seeking reduced systemic risk in their portfolios,” notes Ben Rossman, General Manager. “Roughly 70% of hedge funds reporting thus far are positive for the month, despite the widespread decline across global equity markets, triggered by last week’s 9% drop in the Shanghai stock market.”

The Greenwich Global Hedge Fund Index represents the average performance, net of fees, of hedge fund managers that report to Greenwich Alternative Investments. Updated Index results for February 2007, based on a larger sample of funds, will be released in mid-March. Final February results will be available at the end of March. Additional Greenwich Indices, comprising average February hedge fund performance by investment strategy and broad strategy groups, will also be available at mid-month and month-end.

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