Greenwich Alternative Investments Announces Hedge Funds End 2006 Up +12.07%.Index Returned +1.49% in December GREENWICH, Conn. -- The Greenwich Global 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" Index returned +1.49% in December (+12.07% YTD See Year-to-date. YTD See year to date (YTD). ), according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Greenwich Alternative Investments, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . By comparison, the S&P 500 returned +1.40% (+15.79% YTD). "Hedge funds have been a consistent source of returns with significantly lower risk than that typically associated with equities. They have outperformed equities over the last five years, with about one-third the volatility. During this period the Greenwich Global Hedge Fund Index had annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. returns of +9.23% with volatility of 4.6% versus the S&P's annualized performance of +6.18% with volatility of 12.4%," commented Ben Rossman, General Manager of the Database and Indexation Group. Greenwich Investable Index The Greenwich Investable Hedge Fund Index returned +1.78% in December (+10.76% YTD). The Investable Index adds investability, active management and liquidity to the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. and performance benefits of the broad Greenwich Global Hedge Fund Index. Since its inception in January 2003, the Investable Index has achieved an annualized return of +10.69% with volatility of 4.0% versus Greenwich Global Hedge Fund Index with annualized return of +11.65% and volatility of 4.2%. "The Greenwich Investable Index continues to be the only investable hedge fund index that successfully tracks a published broad hedge fund benchmark," noted Ben Rossman, "That is extremely important as more and more investors realize it is hard to beat the 'hedge fund market' and look to allocate to 'alternative beta'. With an annualized return difference of less than one percent, the Investable Index has performed the way we intended it to, closely tracking both the return and risk profile of the Greenwich Global Hedge Fund Index." The December Greenwich Global Hedge Fund Index includes 1,007 funds. The Investable Index includes 51 funds and is reported monthly net of a 0.04% Index calculation fee. Greenwich Hedge Fund Indices construction rules are available on www.greenwichai.com. Final index results will be calculated and posted at the end of January. Past results are not indicative of future performance. Greenwich Alternative Investments (and its affiliates) manages one of the world's largest hedge fund databases and is among the oldest providers of hedge fund indices, research, and solutions for institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. worldwide. |
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