Stamford, CT, USA, January 10, 2012 – Hedge funds as measured by the Greenwich Global Hedge Fund Index (“GGHFI”) posted mixed results in December as Market Neutral funds averaged the best results for the month.  The GGHFI shed 0.15% compared to global equity returns in the S&P 500 Total Return (+1.02%), MSCI World Equity (-0.17%), and FTSE 100 (+1.21%) equity indices.  51% of constituent funds in the GGHFI ended the month with gains.

“US equities ended 2011 essentially unchanged but endured significant volatility throughout the year.  Hedge funds focused on market neutral strategies were above average performers for the month and the year as they were able to withstand the market uncertainty.  Looking forward, we expect Directional and Long-Short strategies to have better performance as the global economy continues to stabilize,” notes Clint Binkley, Senior Vice President. 

Hedge Fund Strategy Highlights

 

• Event Driven funds lead hedge fund strategies, advancing 0.91% on average
• Long-Short Equity funds trail other averages, falling 0.70%
• Long-Short Credit funds are the best performers on the year, gaining more than 4%
• Developed market funds show substantially better returns than Emerging market managers on a monthly and yearly basis; Asia is the weakest region for the year

 

Strategy Group Summary					Dec Return		YTD Return
Greenwich Global Hedge Fund Index					-0.15%		-4.32%
Market Neutral Group					0.49%		-1.03%
	Equity Market Neutral				0.34%		-2.74%
	Event Driven				0.91%		-1.34%
		Distressed Securities			0.34%		-1.91%
		Merger Arbitrage			0.50%		2.71%
		Several Strategies			1.45%		-2.20%
	Arbitrage				0.21%		0.25%
		Convertible Arbitrage			-0.08%		-0.54%
		Fixed Income Arbitrage			0.68%		3.65%
		Other Arbitrage			-1.83%		-4.15%
Long-Short Equity Group					-0.70%		-8.46%
	Growth				-0.92%		-10.16%
	Opportunistic				-0.97%		-8.26%
	Short-Biased				1.63%		3.56%
	Value				-0.50%		-7.91%
Directional Trading Group					0.02%		-2.21%
	Futures				0.18%		-2.86%
	Macro				-0.36%		-1.10%
Specialty Strategies Group					0.36%		-0.20%
	Long-Short Credit				0.36%		4.24%
	Multi-Strategy				0.36%		-3.05%

 

 

Greenwich Regional Hedge Fund Indices				Dec Return	YTD Return
Developed Markets
	Composite			0.07%	-2.89%
	Global			-0.03%	-3.23%
	Asia			-0.01%	-7.15%
	Europe			0.60%	-4.99%
	North America			0.08%	-1.18%
Emerging Markets
	Composite			-1.45%	-13.9%
	Emerging Markets Global			-1.30%	-6.84%
	Emerging Markets Asia			-1.28%	-17.47%
	Emerging Markets Europe			-4.69%	-22.03%
	Emerging Markets Latin America/SA			0.01%	-9.00%

 

 

The GGHFI is one of the oldest benchmarks of the hedge fund universe.  Finalized Strategy and Regional index results for December will be available in early February, once additional funds have submitted returns.  Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.

 

 

About Greenwich Alternative Investments

Greenwich Alternative Investments, LLC (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 worldwide.

 

 

 

 

(c) Greenwich Alternative Investments

www.greenwichai.com