Hedge Funds Return -1.38% in August; up +6.63% Year-to-Date

The Greenwich Global Hedge Fund Index (the "GGHFI") fell -1.38% in
August, trailing the +1.50% return of the S&P 500. Year-to-date the
GGHFI has outperformed equities, posting returns of +6.63% for the
year. By comparison, the S&P 500, MSCI World Equity, and FTSE 100 have
YTD returns of +5.19%, +5.26%, and +1.34, respectively.

Ripple effects of the sub-prime fallout and the subsequent credit
crunch created widespread uncertainty across the global markets,
adversely affecting hedge funds in virtually all strategies. Among
those most impacted were managers with direct investments in credit
securities. Income managers, particularly those employing significant
degrees of leverage, were forced to sell securities often at deep
discounts in order to reduce portfolio exposure and to meet margin
calls by their creditors. The Greenwich Global Income, Distressed
Securities, and Special Situations Indices returned -0.70%, -0.86%,
and -1.01%, respectively. Quantitative strategies that rely on
consistent relationships between securities also had a difficult
month, as evidenced by the -2.71% performance of the Directional
Trading Group and the -1.36% return of the Equity Market Neutral
Index.

Thus far, the August Index includes 1,046 funds. Final Index
results will be posted at www.greenwichai.com in early October, once
additional funds have submitted returns.

Greenwich Investable Index

The Greenwich Investable Index, comprising 49 funds, adds
investability, active management and liquidity to the diversification
and performance benefits of the broad GGHFI. It references actual
hedge fund vehicles as opposed to separately managed accounts or other
methods used in an attempt to replicate the returns of hedge fund
vehicles. Including a -2.61% return for August, the Investable Index
has achieved an annualized return of +9.66% versus +11.53% for the
GGHFI.

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.

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 of fund performance,
net of underlying fees, the timing of which may affect reported
performance. Past results are not indicative of future performance.