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Greenwich Global Hedge Fund Index fell -0.46% in April (+4.0% YTD)

Friday, May 18, 2012
Opalesque Industry Update - Hedge fund managers produced mixed results in April but lost ground on average as the Greenwich Global Hedge Fund Index fell 0.46% in the month. Long-Short Credit, Fixed Income Arbitrage, and Event Driven strategies were the best performers during the month. The GGHFI’s loss of 0.46% compared favorably to global equity returns in the S&P 500 Total Return (-0.63%), and MSCI World Equity (-1.37%) equity indices. 44% of constituent funds in the GGHFI ended the month with gains.

"European concerns began to weigh on global financial markets in April as volatility impacted returns of Directional strategies. Long-Short Equity funds lagged other sectors largely due to technology holdings of many funds that reversed direction from previous highs. Credit focused managers were winners on the month; Fixed-Income Arbitrage and Long-Short Credit managers gained 55 and 70 bps, respectively. We expect managers to lessen leverage and net exposure levels as European risk becomes increasingly negative,” notes Clint Binkley, Senior Vice President.

Global Index Strategy Highlights
• Long-Short Credit funds are the best performers on the month, gaining 0.70%
• Long-Short Equity funds fall nearly 1%; Value focused funds are best performers, declining 79 bps
• Most Market Neutral strategies advance for the month. Event-Driven funds gain 24 bps on average; Merger Arbitrage funds gain 72 bps
• Emerging Market funds fall substantially more than Developed Market managers – Greenwich Regional Composite Indices decline -0.34% and -0.98%, respectively; European G10 focused funds showed the best monthly performance... Full performance table: Source

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