Another Winning Month for Hedge Funds; Sixth Month This Year Hedge Funds Have Come Out on Top.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 8, 1999--

Based on preliminary hedge fund results, the average U.S. hedge fund returned +0.6% net in August, versus a -0.5% loss for the S&P 500. This is the second consecutive month that the S&P 500 has fallen, and the sixth month this year that hedge funds have outperformed that index, George P. Van, chairman of Van Hedge Fund Advisors International, Inc., a leading hedge fund advisory firm, reported today.

"Despite interest rate fears, which caused significant volatility in both equity and bond markets, over 70 percent of U.S. hedge funds in our sample beat the S&P 500 in August, while over 90% outperformed the Russell 2000," said Van. "With the NASDAQ up strongly, hedge funds with a technology sector bias proved most profitable. The top performing strategies have been Aggressive Growth, Market Neutral-Securities Hedging and Value."

"U.S. hedge funds remain strongly ahead of the S&P 500 year-to-date through August, returning 16.0% net versus the S&P's 8.3% return. With the investment climate still uncertain, hedge funds are becoming even more attractive additions to traditional portfolios," Van concluded.

Final August performance for U.S., Offshore and Global hedge funds, by strategy, will be released later this month.

Van Hedge Fund Advisors International, Inc. provides monthly hedge fund returns, as well as other hedge fund information, at www.vanhedge.com. A sister company maintains one of the largest data banks of hedge funds in the world, with approximately 4,600 hedge funds. The primary database contains detailed information on about 2,800 hedge funds (1,600 U.S. funds and 1,200 Offshore funds) that manage over $162 billion in assets; the secondary database contains basic information on approximately 1,800 funds.

A registered investment advisor, Nashville, Tenn.-based Van Hedge Fund Advisors International, Inc. introduces top-performing hedge funds to substantial investors in the U.S. and abroad.

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. The timing of the deduction of such fees 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.