Hedge Funds Gain 3.2% in January.

GREENWICH, Conn. -- The Greenwich-Van Global Hedge Fund Index (the "Index") gained +3.2% in January according to hedge fund index provider Greenwich-Van Advisors, LLC. In comparison, the S&P 500 and the Lehman Brothers Aggregate Bond Index returned 2.7% and 0.0%, respectively.

"January performance was the strongest since May 2003," notes Wade McKnight, Greenwich-Van Vice President. "Unusually strong equity market volatility and narrowing credit spreads created an exceptional trading environment for many hedge fund managers. The VIX, a measure of equity market volatility, jumped more than 21% to 14.56 after the January 20 stock market close, the biggest one-day percentage jump in nine months. Most hedge fund strategies require volatility to produce meaningful returns."

90% of the 930 funds included in the Index thus far report positive returns. Final returns will be calculated and posted at www.vanhedge.com the end of February after additional funds have submitted returns.

Strategy Group Summary

The Long/Short Equity Group led the four Greenwich-Van Strategy Groups yielding 4.0% fueled by robust economic growth, more than sufficient liquidity, strong equity markets, relatively low interest rates and accommodative regulatory regimes.

The Specialty Strategies Group returned 3.9% helped mainly by continued strength in the emerging markets space.

The Market Neutral Group yielded 2.3% benefiting also from increased volatility. While distressed and high yield secondary markets began 2006 on good footing, investor appetite for new issue paper had its best month since late 2004, as measured by dollars of new issuance.

The Directional Trading Group gained 2.7% in January led by Market Timing hedge funds that allocate among different asset classes depending on the manager's economic or market outlook.

Greenwich-Van Investable Index

The Greenwich-Van Composite Investable Hedge Fund Index gained 2.4% in January. The Investable Index adds investability, active management and liquidity to the diversification benefits of the broad Greenwich-Van Global Hedge Fund Index.

Since its inception January 2003, the Investable Index achieved an annualized return of 11.2% versus 12.3% for the Greenwich-Van Global Hedge Fund Index. Its correlation of 0.95 and Beta of 0.92 to the Greenwich-Van Global Hedge Fund Index further demonstrate the Investable Index's ability to track the hedge fund universe. The Investable Index is reported monthly net of a .04% Index calculation fee. Past performance and Greenwich-Van Hedge Fund Index construction rules may be viewed at www.vanhedge.com .

Greenwich-Van Advisors, LLC manages one of the world's largest hedge fund databases and is among the oldest providers of hedge fund indices and research to institutional investors worldwide.

Accuracy of compiled information reported by managers is not audited or independently verified and may not represent all hedge funds. Greenwich-Van does not necessarily perform due diligence on reporting managers. Hedge fund returns are net of underlying fees and performance allocations. Timing of fee and performance allocations may affect the reported performance. Averages are equal-weighted. Past results are not indicative of future performance.