Emerging markets/macro hedge funds dominate in January; technology sector up 6.3%.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 23, 1996--In January 1996, U.S. and Offshore hedge funds specializing in emerging markets roared back from last year's dismal performance, almost doubling returns achieved by the S&P 500 during the month, according to Van Hedge Fund Advisors (VAN), a leading hedge fund investment advisory firm.

"Emerging markets hedge funds did very well in January, with U.S. funds returning 6.3% on average and Offshore funds returning 6.8% on average, compared to the 3.4% gain in the S&P 500 during the month," according to George P. Van, chairman of Van Hedge Fund Advisors. "This comes off a 1994 loss of 8.5% and a 1995 gain of just 1% for U.S. emerging markets hedge funds and a 1994 loss of 3.2% and a 1995 loss of 0.7% for Offshore emerging markets hedge funds.

"Part of the reason for this may be investor sentiment that emerging markets hedge funds are due for a substantial rebound, if history is any guide. In 1993, for example, emerging markets hedge funds in the U.S. returned 75.5%, while Offshore emerging markets hedge funds returned a whopping 86.3%. And, it should be kept in mind that emerging markets hedge funds have been among the top performing funds on average over the past five years (1991-1995), with net compound annual returns of 24.3% in the U.S. and 22.5% Offshore.

"Despite the exceptional showing from the emerging markets arena, however, macro hedge funds in the U.S. scored the highest of all hedge funds for January, returning 8.2% to investors. On another front, of the four major U.S. hedge fund sectors we track, the Technology sector hedge funds returned 6.3% on average in January, followed by the Healthcare sector at 5.0%, the Communications sector at 3.0% and the Financial Services sector at 2.3%," Van noted.

"Overall in January, the average U.S. hedge fund gained 2.6% and the average Offshore hedge fund gained 3.8%, while the average U.S. equity mutual fund gained 2.4%," Van concluded.

For January 1996, hedge fund returns by investment style were as follows: -0-

                       Van Hedge Fund Advisors
                          Hedge Fund Returns

                                       January 1996
                                      U.S.   Offshore
Aggressive Growth                     2.8%     5.9%
Distressed Securities                 2.1%     1.1%
Emerging Markets                      6.3%     6.8%
Fund of Funds                         2.6%     5.2%
Income                                1.1%     1.0%
Macro                                 8.2%     5.6%
Market Neutral-Arbitrage              2.8%     N/A
Market Neutral-Securities Hedging     4.3%     N/A
Market Neutral Strategies             N/A      1.8%
Market Timing                         5.5%     2.2%
Opportunistic                         1.9%     1.3%
Several Strategies                    0.7%     N/A
Short Selling                         0.8%     0.3%
Special Situations                    3.1%     2.1%
Value                                 1.5%     2.2%-0-

Van Hedge Fund Advisors, Inc. maintains what is believed to be the largest database of hedge funds in the world, monitoring the performance of over 1,500 hedge funds (over 900 in the U.S. and 600 Offshore) that actively manage over $95 billion in assets. VAN works with faculty of the Owen Graduate School of Management of Vanderbilt University in its hedge fund research.

A registered investment advisor, Nashville, Tenn.-based Van Hedge Fund Advisors identifies top-performing hedge funds for substantial investors both in the U.S. and overseas.

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Note to Editors: Van Hedge Fund Advisors also has available on request a Global Index that combines the performance of U.S. and Offshore hedge funds in aggregate and by investment style, over the past five years, compared to other investment benchmarks (i.e. S&P 500, MSCI World). Similar information is available for U.S. and Offshore returns.

Information on U.S., Offshore and Global hedge fund performance is based on information received (and not audited or independently verified) from the hedge funds in Van Hedge Fund Advisors' databases and may not be representative of all hedge funds. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.

Database Reference: INVESTMENTS HEDGE FUNDS

CONTACT: Van Hedge Fund Advisors, Nashville

George P. Van, 615/377-2949