NASHVILLE, Tenn.–(BUSINESS WIRE)–Dec. 11, 2003–The Van Global Hedge Fund Index posted a 1.1% net gain in November, according to Van Hedge Fund Advisors International (VAN). The Index representsthe average net monthly hedge fund return submitted to VAN, with nearly 850 funds from around the world included in the November Index. Excluding funds of funds, the Index also returned 1.1% net forthe month. The Van U.S. Hedge Fund Index, which includes only those funds domiciled in the United States, rose 1.3% net in November. The Van Offshore Hedge Fund Index, based on non-U.S.-domiciledhedge funds, gained 0.8% net.
November hedge fund performance was, on average, similar to equities. The S&P 500 earned 0.9% for the month. Half of the hedge fund returns reported to VAN surpassed the S&P’s return. About 78% of reporting hedge funds were positive.
“The Van Global Hedge Fund Index has gained 15.7% net for the year to date through November,” stated George Van, Chairman of VAN. “We’re pleased to see that hedge funds are on track to make their best showing overall since 1999. It’s worth noting, too, that the Index’s monthly returns this year have been less volatile than they were in the last few years and they are considerably less volatile than the 2003 monthly returns of the S&P 500, Dow, or NASDAQ. Hedge funds’ use of short selling and other hedging tactics generally helps them smooth out the effects of sharp market shifts.”
As has become the norm this year, Short Selling was the only strategy in the Global Index to post a loss for the month, down -1.4% net. November’s best performing strategies were Distressed Securities, which gained 1.9% net, Value, which earned 1.6% net, and Special Situations, which returned 1.4% net. For the year to date, the top returning strategies are Emerging Markets, Aggressive Growth, and Distressed Securities, which have posted net gains of 34.6%, 26.4%, and 24.8%, respectively.
The Van Global Hedge Fund Index reached a new high value of 10,461.95 in November. The Index began with a value of 1,000 in January 1988. The Index has generated a net compound annualized return of 15.9% over its 15 year, 11 month history. Past performance of the Van Global Hedge Fund Index may be viewed at www.hedgefund.com.
Final November returns for the Van Hedge Fund Indices will be calculated at the end of December, based on a substantially larger sample of hedge fund returns. Those results will supersede the returns reported herein, should they differ. Final November returns will be posted at www.hedgefund.com.
As currently calculated, November and year-to-date 2003 hedge fund returns by strategy are as follows: <pre><br> Global U.S. Offshore<br> ———— ———— ————<br> Nov. YTD Nov. YTD Nov. YTD<br> 2003 2003 2003 2003 2003 2003<br>——————————- ———— ———— ————<br>Aggressive Growth 1.3% 26.4% 1.4% 27.2% 0.9% 25.2%<br>——————————- ———— ———— ————<br>Distressed Securities 1.9% 24.8% 2.0% 23.6% 1.8% 25.9%<br>——————————- ———— ———— ————<br>Emerging Markets 1.2% 34.6% 0.7% 30.4% 1.3% 35.7%<br>——————————- ———— ———— ————<br>Income 0.8% 8.6% 0.9% 9.1% 0.8% 7.8%<br>——————————- ———— ———— ————<br>Macro 0.6% 13.4% 0.9% 15.4% 0.4% 12.4%<br>——————————- ———— ———— ————<br>Market Neutral – Arbitrage 0.6% 7.5% 0.7% 7.8% 0.6% 7.1%<br>Market Neutral – Securities <br> Hedging 0.5% 6.7% 0.8% 6.4% 0.2% 6.6%<br>——————————- ———— ———— ————<br>Market Timing 0.2% 8.6% 0.4% 9.1% -0.1% 8.1%<br>——————————- ———— ———— ————<br>Opportunistic 1.6% 22.5% 2.1% 25.5% 1.0% 19.5%<br>——————————- ———— ———— ————<br>Several Strategies 0.3% 15.3% 0.7% 19.5% N/A N/A<br>——————————- ———— ———— ————<br>Short Selling -1.4% -23.0% -1.2% -21.2% -1.8% -25.2%<br>——————————- ———— ———— ————<br>Special Situations 1.4% 17.3% 1.6% 18.6% 1.1% 15.9%<br>——————————- ———— ———— ————<br>Value 1.6% 20.4% 1.9% 21.7% 1.2% 18.3%<br>——————————- ———— ———— ————<br>Van Hedge Fund Index<br>(ex Funds of Funds) 1.1% 16.5% 1.3% 17.5% 0.8% 15.3%<br>——————————- ———— ———— ————<br>Funds of Funds 0.6% 10.2% 1.0% 11.5% 0.2% 8.6%<br>——————————- ———— ———— ————<br>Van Hedge Fund Index 1.1% 15.7% 1.3% 16.9% 0.8% 14.5%<br>——————————- ———— ———— ————<br></pre>
Van Hedge Fund Advisors International, Inc. (“VAN”) is a global hedge fund advisory firm which constructs hedge fund portfolios for international institutions and wealthy investors. VAN bases its work on its pioneering research on hedge funds begun in the early 1990s and by drawing on one of the world’s largest hedge fund databases.
The Company’s hedge fund index information is based on information received (and not audited or independently verified) from the hedge funds in an affiliate’s databases and may not be representative of all hedge funds. Hedge fund returns are net of fees and performance allocations. The timing of the deduction of such fees and performance allocations may affect the reported performance. The November Index as reported herein was created using a sample of 846 funds. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.
