Arden Asset Management Launches Full Risk Transparency Fund of Funds; London Office Expands Arden's European Research Capabilities.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 30, 2002

Arden Asset Management, Inc., a leading hedge fund of funds manager with approximately $2.5 billion in assets under management, today announced that it has launched a customized fund of funds with full risk transparency, which will provide comprehensive risk analysis and attribution reports for a large institutional investor. Risk transparency reporting is based on full position transparency provided by the underlying fund managers.

In developing its unique fund of funds product, Arden utilized the data aggregation and risk management platform of RiskMetrics Group, a leading third party provider of risk management systems and data services. RiskMetrics Group's technology will enable Arden to conduct stress testing and scenario analysis of the fund of funds portfolio, which will complement the overall Arden risk management process without compromising the confidential nature of the underlying managers' portfolios.

"Our new fund of funds product is the ultimate form of hedge fund transparency for institutional investors seeking a tailored approach to realizing risk-adjusted, absolute returns in today's volatile financial markets," said Averell H. Mortimer, President of Arden Asset Management. "This revolutionary product offers customized reporting, which permits a form of in depth risk analysis previously unavailable to investors, allowing large institutions to better integrate funds of funds into their existing risk management and asset allocation programs."

Arden also announced that its London office recently received Financial Services Authority (FSA) approval and has commenced operations. As previously announced, Ian McDonald and Todd Walters, both formerly of Morgan Stanley's International Prime Brokerage Group, will run the office, primarily focusing their efforts on hedge fund manager due diligence and capital market research.

"We believe a London presence will allow Arden to more closely monitor European financial markets, while developing stronger relationships with Europe-based hedge fund mangers and investors," continued Mortimer. "With a continuously demanding and competitive market place, it is paramount that a fund of fund manager create a global platform to further enhance market knowledge, performance returns and portfolio diversification."

Arden's overall investment process is coordinated from New York by the firm's three member Investment Committee, consisting of Averell H. Mortimer, Henry P. Davis, who is responsible for manager due diligence and monitoring at Arden, and Stefan Zellmer, who oversees Arden's risk management activities.

Mortimer concluded, "As we celebrate our ninth anniversary as a dedicated absolute return fund of funds manager without any conflicting lines of business, we are pleased to continue to generate strong, risk-adjusted returns for our clients, while expanding our research capabilities on several fronts. Our independence and global presence enables Arden to establish early relationships with leading investment managers worldwide, an increasingly important element in constructing scalable, research-oriented fund of fund programs designed for the institutional investor."

Founded by Averell H. Mortimer in 1993, Arden Asset Management is a leading global fund of funds investment management company based in New York with approximately $2.5 billion in assets under management. Arden is registered with the SEC and the CFTC/NFA, as well as London's FSA. Arden's institutional and high net worth investors include taxable and non-taxable clients from the United States, Canada, Europe, Asia, Japan, South America and Australia.