1999 Best Hedge Fund Year On Record; Preliminary Estimates Show Spectacular 41.0% Gain in 1999.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 6, 2000

In December, the Average U.S. Hedge Fund returned 12.0% net, based on preliminary results, strongly beating the S&P 500's 5.9% return. This brings the year-to-date return of the Average U.S. Hedge Fund to 41.0% net, almost double the S&P 500's 21.0% according to Steven A. Lonsdorf, President of Van Hedge Fund Advisors International, Inc. (VAN), a worldwide hedge fund advisory firm. Based on these preliminary numbers, the Average U.S. Hedge Fund also outperformed the Dow and the Russell 2000 in 1999.

"This has been a terrific year for hedge funds," said Lonsdorf. "While the S&P 500 posted losses in five out of twelve months in 1999, the Average U.S. Hedge Fund had only one down month, despite volatility in the markets, uncertainty over interest rates, and lingering questions about hedge fund regulation. In fact, based on these preliminary numbers, we believe 1999 to be the best year for hedge fund performance since our first year of tracking them with a large sample, in 1988. Hedge fund managers have learned from their experiences in recent years. In 1999, they were long when markets roared and short when markets dropped.

"Aggressive Growth funds should be among the top performers and technology funds also are expected to post very good returns. Strong gains in small cap stocks resulted in an 11.3% gain by the Russell 2000 and should positively impact Value funds.

"After a lackluster 1998, both the industry and hedge fund investors should throw a party after 1999's results. We congratulate hedge fund managers and hope that 2000 will bring more of the same," Lonsdorf concluded.

Final December performance for U.S., Offshore and Global hedge funds, by strategy, and year-end commentary will be released later this month.

A registered investment advisor, Nashville, Tennessee-based Van Hedge Fund Advisors International, Inc. introduces top-performing hedge funds to substantial investors throughout the world.

(The Company's information on hedge funds is based on information received (and not audited or independently verified) from the hedge funds in its databases and may not be representative of all hedge funds. Hedge fund returns are net of fees and performance allocations. The timing of the deduction of such fees and performance allocations may affect the reported performance. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.)