Managed Futures Hedge Funds Lead Investable Indices
Friday, January 28, 2011

The Greenwich Composite Investable Index gained 1.88% in December to close 2010 with one of its best months of the year, Greenwich Alternative Investments has announced.

Equity markets sustained a global rally in December driven by positive economic reports and strong seasonal trends. All of the Greenwich Investable Indices moved higher on the month, with Futures and Long-Short Equity strategies exhibiting the best results.

Laggards on the month were more market neutral strategies, such as Arbitrage and Equity Market Neutral funds, as each respective Investable Index gained 0.52% and 0.88%.

For the year, the Arbitrage, Futures, and Event-Driven Investable Indices produced the best results, with returns of 10.77%, 8.56% and 8.46%, respectively.

“Hedge fund managers let their net exposures run higher in December in order to capture the seasonal moves that are expected late in the year. As a whole, most investors should be satisfied with hedge fund performance in 2010 as most strategies met or exceeded their benchmark performance with less volatility than other asset classes,” noted Clint Binkley, Senior Vice President.

“Looking into 2011, the concerns many investors have about growth in China and austerity measures in Europe should draw fresh capital to the hedge fund space. Investors still seek the downside protection that this alternative asset class provides," he added.

The Greenwich Investable Hedge Fund Indices are specifically designed to represent the returns of the hedge fund universe. They cover a wide spectrum of hedge fund strategies, providing investors with access to hedge fund beta. The indices reference 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. The Indices are reported monthly net of a 0.083% per period index calculation fee.