Average Hedge Fund Outperforms Indices in May; Short Sellers Leading Once Again.Business Editors NASHVILLE, Tenn.--(BUSINESS WIRE)--June 7, 2000 Preliminary estimates show the Average U.S. Hedge Fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" held up well again in May, losing only -1.3% net, reported Steven A. Lonsdorf, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Van Hedge Fund Advisors International, Inc., a global hedge fund advisory firm. This brings the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. return of the Average U.S. Hedge Fund to 6.1% net. In comparison, the Dow slipped -1.8% in May while the S&P 500 and NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on dropped -2.1% and -11.9%, respectively, bringing their respective year-to-date returns to -7.9%, -2.8% and -16.4%. "Short Sellers are the early leaders again this month as continued market sell-offs gave them ample opportunities to make money," said Lonsdorf. "In fact, none of the short sellers reporting at this time posted losses in May. Market Timing managers also performed well in May and are one of the only other three strategies reporting aggregate gains at this time." "The first few days of June have been much calmer for the markets, and some are saying that the worst is over. However, due to their ability to protect capital in uncertain markets and generate gains in up markets, hedge funds are a logical choice whatever your current market outlook," Lonsdorf concluded. Final May performance for U.S., Offshore and Global hedge funds, by strategy, will be released later this month. A registered investment advisor Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in , 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 ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. ) 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 deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. 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. |
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