Hedge Funds up +2.04% in April; Strongest Return since January '06.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 +2.04% in April, and +4.81% year-to-date. By comparison, the S&P 500, MSCI World The MSCI World is a stock market index of 'world' stocks. It is maintained by Morgan Stanley Capital International. The index includes a selection of stocks of all the developed markets in the world, as defined by MSCI. Equity, FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. 100, and Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Aggregate Bond indices were up by +4.43% (+5.09% YTD See Year-to-date. YTD See year to date (YTD). ), +4.21% (+6.36% YTD), +2.24% (+3.68% YTD), and +0.54% (+2.05% YTD), respectively. "Hedge funds continue to deliver solid returns, but with significantly less risk than equities," notes Ben Rossman, General Manager. "Over the last five year period, for example, hedge funds' 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. volatility measured about 4.5%, which is roughly a third of the 12%-13% volatility experienced by equities." 17 of 18 Greenwich strategies ended April in positive territory. Futures strategies led, up +4.42%, owing largely to managers' ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. strength in energy and Euro and Sterling valuations. Short sellers, which account for roughly 1% of index constituents, were the exception; down -2.91% for the month (-3.03% YTD).
Strategy Group Summary
April Return YTD Return
Greenwich Global Hedge Fund Index 2.04% 4.81%
Market Neutral Group 1.18% 4.73%
Equity Market Neutral 1.24% 3.79%
Event-Driven 1.71% 6.42%
Distressed Securities 1.79% 6.19%
Merger Arbitrage 1.75% 5.37%
Special Situations 1.66% 6.99%
Market Neutral Arbitrage 0.79% 3.92%
Convertible Arbitrage 0.34% 3.95%
Fixed Income Arbitrage 0.66% 3.82%
Other Arbitrage 1.19% 4.36%
Statistical Arbitrage 1.62% 3.46%
Long-Short Equity Group 2.03% 5.27%
Aggressive Growth 2.05% 5.14%
Opportunistic 2.73% 6.20%
Short Selling -2.91% -3.03%
Value 2.13% 5.44%
Directional Trading Group 3.35% 2.38%
Futures 4.42% 1.72%
Macro 1.30% 2.62%
Market Timing 2.07% 3.49%
Specialty Strategies Group 2.44% 6.20%
Emerging Markets 3.35% 7.27%
Income 0.97% 3.29%
Multi-Strategy 1.98% 6.04%
Currently, the April Index includes 972 funds. Final results will be posted at www.greenwichai.com the end of May, after additional funds have submitted returns. Greenwich Investable Index In April, the Greenwich Investable Index returned 1.49% (4.03% YTD). It 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. It references actual hedge fund vehicles as opposed to separately managed accounts that attempt to replicate rep·li·cate v. 1. To duplicate, copy, reproduce, or repeat. 2. To reproduce or make an exact copy or copies of genetic material, a cell, or an organism. n. A repetition of an experiment or a procedure. the returns of actual hedge fund vehicles. Since inception in January 2003, the Investable Index has achieved an annualized return of +10.83% versus +11.93% for the Greenwich Global Hedge Fund Index. Past performance and Greenwich Hedge Fund Indices construction rules may be viewed at www.greenwichai.com. About Greenwich Alternative Investments Greenwich Alternative Investments, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (and its affiliates) manages one of the world's largest hedge fund databases and is among the oldest providers of hedge fund indices, asset management services and research to 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. Accuracy of information reported by managers is not necessarily audited or independently verified and may not represent all hedge funds. Index returns represent simple averages, net of underlying fees, timing of which may affect reported performance. Past results are not indicative of future performance. |
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