Hennessee Releases 6th Annual Hedge Fund Survey

by Carla Johnson, Investors Offshore.com

01 April 2003

According to the results of the recently published Hennessee Hedge Fund Investor Survey, 82% of hedge fund investors found that the investment vehicles met or exceeded their expectations in 2002.

Although Hennessee admitted that the sector had suffered as a result of the turbulent market conditions which defined 2002, it explained that hedge funds had still outperformed the majority of other investments.

In order to illustrate this, the firm revealed that while the Hennessee Hedge Fund Index experienced its first down year since its inception in 1987, finishing down -3.43%, the S&P 500 index finished down -22.19% in 2002, the Dow Jones Industrials Average fell -16.76%, and the NASDAQ dropped a spectacular -31.52%.

'The performance of hedge funds in 2001 and 2002 has made it increasingly prudent to consider hedge funds as an equity or bond investment within traditional asset allocation,' Elizabeth Lee Hennessee, founder and managing principal of the Hennnessee Group announced, adding: 'Someday, we believe it will be considered imprudent not to include hedge funds within a stock and bond allocation.'

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