Credit Suisse /Tremont Hedge Fund Index - Dow Jones Hedge Fund Benchmarks - Frontier Capital Multi-Asset Platform Fund - Greenwich Global Hedge Fund Index - HFRX Global Hedge Fund Index - Lyxor Global hedge Fund Index

Final Performance for the Credit Suisse/Tremont Hedge Fund Index was up 1.09% in January. Hedge funds showed signs of a rebound, finishing on a positive note despite US equity markets experiencing the worst January in recent history. Convertible arbitrage managers in particular posted positive performance, benefiting from improved credit markets and overall increased buying interest. Global macro managers also did well as market volatility created favourable trading opportunities. Overall, seven of the index's 10 sectors finished the month in positive territory.

The Dow Jones Hedge Fund Merger Arbitrage Strategy Benchmark was the best performing at the end of January, up 1.62% for the month and up 1.62% year to date. The Dow Jones Hedge Fund Event Driven Strategy Benchmark was the second best performing, up 1.23% in January and up 1.23% for 2009. The Dow Jones Hedge Fund Distressed Securities Strategy Benchmark was the third best performing although it was down 3.66% for the month and down 3.66% for 2009. In January the Dow Jones Hedge Fund Balanced Portfolio Index and the Equity Market Neutral, Equity Long/Short and Convertible Arbitrage Strategy benchmarks were not calculated. The benchmarks are a measurement tool for individual hedge fund strategies. The Dow Jones Hedge Fund Balanced Portfolio Index represents the overall benchmark.

The Frontier Capital Multi Asset Platform (MAP) Fund returned -3.7% in January with six of the eight asset classes showing negative returns. Hedge funds and emerging bonds were the best-performing asset classes, increasing by 0.7% and 0.2% respectively. The worst-performing asset class was global real estate, down 11.6%, followed by global equities, down 7.0%. Over the five years to January 2009, the MAP strategy has generated 1.3% annualised returns with volatility of 8.7%. The MAP fund is an investable fund tracking eight global asset class indices, using an asset allocation inspired by US university endowments.

The FTSEhx Fund SPC posted a return of -1.29% in US dollar terms and -1.10% in sterling terms during January. The biggest contributors to the month's performance were the event-driven (-2.07%) and directional (-1.83%) styles. This was largely due to the performance of managers in the distressed and opportunities (-2.41%), equity hedge (-2.01%) and global macro (-1.80%) strategies

Hedge funds as measured by the Greenwich Global Hedge Fund Index (GGHFI) and the Greenwich Composite Investable Index (GI2) withstood falling equity markets during January to begin 2009 with gains. The GGHFI returned a positive 0.42% and GI2 was up 0.10% compared to global equity returns in the S&P 500 Total Return (-8.43%), MSCI World Equity (-8.85%) and FTSE 100 (-6.42%) equity indices. Over half (59%) of constituent funds in the GGHFI ended the month with gains.

The HFRX Global Hedge Fund index has had an encouraging start to 2009. It posted a positive 1.10% return in January. Convertible arbitrage was the top-performing strategy of the month at 5.90%. Only two strategies performed negatively in January: distressed securities (-0.46%) and equity hedge (-0.15%). This was a vast improvement on the fortunes of last year when the index had its worst performance on record falling 23.25%. Convertible arbitrage was the worst-performing strategy for 2008 posting -58.37% with relative value arbitrage close behind with -37.60% at year end.

The Lyxor Global Hedge Fund Index, an investable index based on Lyxor's hedge fund platform which tracks the overall hedge fund universe, was up 1.53% in January. Special situations posted a solid gain (4.1%). Special situations funds on average took on more equity bias than, say, merger arb funds (+1.8%). Fixed income (+4.2%) and long/short credit managers (+2.0%) had a decent month. Distressed managers, tending to be short, performed poorly (-1.2%). Short-term CTAs were up 3.3%, although CTAs with a longer-term orientation posted a loss of 0.5%. Overall, convertible arbitrage managers ended up 1.9%, global macro managers were up 0.3%. Long bias managers ended the month down 2.1%. Market neutral finished -20 bp and variable bias managers were up 70 bp.