Hedge Funds' Biggest Decline since July 2002

GREENWICH, Conn.--(Business Wire)--
The Greenwich Global Hedge Fund Index ("GGHFI") fell -2.44% in
January amid severe declines in global equity markets; the S&P 500,
MSCI World Equity, and FTSE 100 indices fell by -6.0%, -7.71%, and
-8.94%, respectively. 79% of hedge funds outperformed the S&P 500,
with 33% ending the month in positive territory.

"Despite January being hedge funds' weakest month since July 2002,
hedge funds fell far less than equities," notes Margaret Gilbert,
Managing Director. "This 'downside protection' is particularly
apparent over the last twelve months with hedge funds returning
+7.14%, outperforming the S&P 500 by +9.45% during this period."

For January, all four strategy groups outperformed the S&P 500.
Directional Trading ended up +0.81%, with positive performance driven
by futures managers' returns of +2.13%. Dedicated short sellers were
the stellar performers, up +6.99%. Long-biased equity strategies
sustained widespread losses with the Long-Short Equity Group down
-3.75% in January. Specialty Strategies were down -4.28%, largely
attributable to emerging managers losing -6.16%. The Market Neutral
Group declined by -1.23%. January's Index currently includes 1,011
constituent funds. Final results will be posted at www.greenwichai.com
early March, once additional funds have submitted returns.

The Greenwich Composite Investable Index returned -2.45%, closely
tracking the GGHFI performance. Comprised of 52 constituent funds, it
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. It has a correlation of .94 and beta of 0.95
to the GGHFI and is reported monthly net of a 0.04% Index calculation
fee. Past performance and construction rules for all Greenwich Hedge
Fund Indices may be viewed at www.greenwichai.com.

Greenwich Alternative Investments, LLC 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
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.

Greenwich Alternative Investments
Margaret Gilbert, Managing Director, 214-696-0020
mgilbert@greenwichai.com

Copyright Business Wire 2008