Greenwich Remains #1 among Investable Hedge Fund Indices
The Greenwich Composite Investable Hedge Fund Index has again
out-performed its peers, posting higher returns than competing
investable indices every year since its inception in 2003, according
to hedge fund index provider Greenwich Alternative Investments, LLC.
From January 2003 through December 2006, the Greenwich Investable
Hedge Fund Index produced an annualized return of 10.7% versus 7.3%,
6.9% and 5.6% as reported for the same period by the investable index
providers of CSFB, HFR and MSCI, respectively.
For the fourth straight year, the Greenwich Investable Index has
also achieved the lowest tracking difference to its broad benchmark,
the Greenwich Global Hedge Fund Index. The Greenwich Investable Hedge
Fund Index reported an annualized return of 10.7% versus 11.7% for the
Greenwich Global Hedge Fund Index, a difference of one percent. By
comparison, over the same period, the annualized tracking error of
other investable indices was significantly higher with CSFB, MSCI and
HFR reporting 4.3% 4.8% and 5.7%, respectively.
-0-
*T
Investable Index
Annualized
Return
Index Provider 2006 2005 2004 2003 2003-2006
-------------------------------- ----- ----- ----- ----- ------------
Greenwich 10.7% 5.0% 7.2% 20.4% 10.7%
CSFB-Tremont 9.5% 3.2% 5.3% 11.1% 7.3%
HFR 9.3% 2.7% 2.7% 13.4% 6.9%
MSCI 7.6% 4.7% 3.1% 7.2% 5.6%
-------------------------------- ----- ----- ----- ----- ------------
Broad Index
Annualized
Return Tracking
Index Provider 2006 2005 2004 2003 2003-2006 Difference
-------------------- ----- ----- ----- ----- ----------- ------------
Greenwich 12.1% 8.6% 7.7% 18.6% 11.7% -1.0%
CSFB-Tremont 13.9% 7.2% 9.6% 15.4% 11.6% -4.3%
HFR 12.9% 9.3% 9.0% 19.5% 12.6% -5.7%
MSCI 11.3% 8.1% 6.9% 15.4% 10.4% -4.8%
-------------------- ----- ----- ----- ----- ----------- ------------
*T
Greenwich Investable Indices are reported monthly net of a .04%
Index calculation fee.
"The transition of indexes from market measures to investment
vehicles is taking place across all asset classes, including hedge
funds. As more investors realize how difficult it is to beat the
'hedge fund market' they are attracted to hedge fund beta products
that demonstrate performance comparable to a reputable industry
benchmark," notes Margaret Gilbert, Managing Director at Greenwich
Alternative Investments. "The Greenwich Composite Investable Hedge
Fund is the only investable hedge fund index that has closely tracked
its benchmark and successfully delivered the beta of the hedge fund
universe."
About Greenwich Alternative Investments
Greenwich Alternative Investments, LLC 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. Further information is available at
www.greenwichai.com.
Performance data was obtained from publicly available sources.
Accuracy of information reported by managers is not necessarily
audited or independently verified and may not represent all hedge
funds. Index returns are net of underlying fees, the timing of which
may affect reported performance. Past results are not indicative of
future performance.