Average Hedge Fund Return More Than Twice S&P 500'S in November.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 15, 1999--

The average hedge fund jumped 5.7% net in November versus a 2.0% gain by the S&P 500, according to George P. Van, chairman of Van Hedge Fund Advisors International, Inc. (VAN), a leading hedge fund advisory firm. This further increased the hedge fund lead over the S&P 500 for the year to date, with the Average U.S. Hedge Fund returning 25.9% net and the Average Offshore Hedge Fund returning 25.6% net through November. In comparison, the Average Equity Mutual Fund has returned 18.0% for the year to date, and the S&P 500 14.3%.

"Over 80% of the funds in our Indices posted gains in November, with over 60% beating the S&P 500," said Van. "Of the U.S. strategies we track, Emerging Markets posted the best performance in November with a 10.9% gain, capitalizing on market gains throughout the world. They significantly outperformed the Morgan Stanley Emerging Markets Index, which gained 7.6%. November's strong performance brings U.S. Emerging Markets hedge fund returns to 33.7%, while their offshore counterparts have gained 41.6%, putting them well ahead of most of the major indices.

"Thirteen of the 14 global hedge fund strategies we track posted gains in November, with Short Sellers being the sole exception," Van continued. "Short Sellers, who had managed to hold their own this year thanks in part to a volatile market, lost -10.1% on average in November, bringing their year-to-date returns below zero for the first time since September. If the current rally holds, these managers could continue to suffer.

"Year to date, however, Aggressive Growth hedge funds are the clear leaders with U.S. Aggressive Growth funds returning 47.0% net through November, while Offshore Aggressive Growth funds returned a whopping 54.0%. Continued gains in productivity may well allow these funds to continue posting strong returns.

"As we move through December, the markets should remain strong. Many of the managers we track are flourishing in this environment as they have been all year. We believe that 1999 could be their best year ever," Van concluded.

The best-performing hedge fund strategies for November were Offshore Funds of Funds, U.S. Emerging Markets and U.S. and Offshore Aggressive Growth (tie), which had net returns of 12.0%, 10.9% and 10.7%, respectively. Year to date through November, Offshore Aggressive Growth is the leader with a 54.0% return, while U.S. Aggressive Growth and Offshore Emerging Markets follow with 47.0% and 41.6% net returns, respectively.

November 1999 and year to date through November hedge fund returns by investment strategy were as follows: -0-

Strategy                        U.S.          OFFSHORE
                            HEDGE FUNDS      HEDGE FUNDS
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                           November  YTD    November  YTD
                            1999    1999     1999    1999
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Aggressive Growth           10.7%   47.0%    10.7%   54.0%
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Distressed Securities       1.0%    11.4%    3.2%    13.9%
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Emerging Markets            10.9%   33.7%    9.2%    41.6%
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Fund of Funds               5.3%    18.6%    12.0%   30.6%
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Income                      1.2%     4.9%    0.7%    3.9%
--------------------------------------------------------------
Macro                       3.4%    31.2%    0.4%    12.0%
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Market Neutral - Arbitrage  3.1%    16.4%    2.4%    15.4%
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Market Neutral -
 Securities Hedging         2.3%    20.0%    4.4%    17.0%
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Market Timing               6.6%    29.1%    7.0%    20.0%
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Opportunistic               8.5%    37.3%    7.8%    21.9%
--------------------------------------------------------------
Several Strategies          6.7%    32.3%      N/A    N/A
--------------------------------------------------------------
Short Selling              -10.6%   -12.2%   -9.1%   -5.1%
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Special Situations          6.2%    29.4%    2.7%    19.7%
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Value                       7.6%    27.2%    5.3%    23.1%
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Van Hedge Fund Index        5.7%    25.9%    5.7%    25.6%
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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.

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. Currently, a minimum of 450 funds are used to create the monthly Index, while a minimum of 550 funds are used to create the quarterly Index. The sample of managers will vary from period to period. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.)