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Hedge Fund Returns Trend Upward

FAIRFIELD, Iowa, October 11, 2006 – Hedge fund performance rose for the third month in a row, gaining 0.11% in September according to flash estimates for the Barclay Hedge Fund Index.

“September returns were dominated by a rally in G7 and Asian equity markets,” said Sol Waksman, founder and president of The Barclay Group.

“Funds with the largest net long exposure in the G7 and Asian markets had the greatest likelihood of a profitable month.”

Overall, 11 of Barclay’s 18 hedge fund indexes gained value in September. The Technology Index jumped 2.65%, Merger Arbitrage gained 1.04%, and Convertible Arbitrage rose 0.77%.

“The flip side of the positive returns in equities are the losses sustained by the short-sellers,” says Waksman. “And, of course, we mustn’t forget the well-publicized losses in the energy sector, where prices have continued their prolonged decline.”

The largest decline was in the Equity Short Bias Index, which dropped 2.36% in September. The Global Macro Index fell 1.08%, and Equity Market Neutral lost 0.65%.

“The Global Macro sector had a difficult month due to volatility in currency markets stemming from a choppy market for the US dollar coupled with the decline in energy prices.”

The trend for hedge fund returns continues upward, with 16 of Barclay’s 18 hedge fund indexes in positive territory for 2006. The Emerging Markets Index is up 10.40%, Merger Arbitrage is up 9.91%, and Healthcare and Biotechnology has gained 9.87%.

The Barclay Hedge Fund Index has been positive in seven out of nine months this year, and is up 6.77% year to date.

Only two indexes have lost ground in 2006. The Pacific Rim Equities Index is down 1.95% for the year, and Equity Short Bias has lost 1.14%.

Click here to view ten years of Barclay Hedge Fund Index data.

Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. Call 641-472-3456 or email for more commentary or background.

The Barclay Group, founded in 1985, actively tracks more than 5,800 hedge funds and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes. Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s indexes as performance benchmarks for the hedge fund and managed futures industries.