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12 Dec 2007

Hedge Funds Low in November but High Year To Date

The Greenwich Global Hedge Fund Index is up +10.53% year-to-date despite falling -1.61% in November, and it continues to outpace equities for the month and year.

Ben Rossman, Senior Vice President of Greenwich Alternative Investments noted that, “Hedge fund performance, which was less severe than that felt by the equity markets, highlights their unique ability to limit the downside.”

All four equity indices were down by more than 4% in November: the S&P 500, MSCI World Equity, and FTSE 100 Indices posted -4.18% (+6.23% YTD), -4.24% (+7.97% YTD), and -4.30% (+3.41% YTD), respectively.

The November Index currently includes 1,325 funds. Final November results will be posted in early January, once additional funds have submitted returns.

Greenwich Alternative Investments, LLC (and its affiliates) is among the oldest providers of hedge fund indices, asset management services and research to institutional investors worldwide.

Hedge Funds Experiencing Staff Shortages

According to a new survey conducted by CPA firm Rothstein Kass, nearly 70% of hedge funds are having difficulty retaining back-office personnel. "Hedge funds have seen tremendous inflows of capital in recent years, a trend that has accelerated as sophisticated investors seek to mitigate risk in volatile market conditions," said Howard Altman, Co-Managing Principal of Rothstein Kass.

"However, as our research reveals, the rapid pace of industry growth has left back-offices more pressured than ever before. Firms of all sizes are struggling to retain qualified personnel amid existing staffing shortages, including the CFO and COO levels. These problems will only be exacerbated by the industry's increasing institutional focus, since these investors generally demand stricter reporting and compliance capabilities."

Survey findings were based on interviews with over 500 Chief Financial Officers at direct investment hedge funds with at least $100 million in assets under management.

Firms in the study are representative of a wide range of investment styles, experience levels and assets under management. Approximately half had assets between $100 and $999 million. A quarter reported assets of between $1 and $2.99 billion, and the balance were firms with assets in excess of $3 billion.

The study was commissioned and results analyzed by the Rothstein Kass Executive Search Group, which specializes in the recruitment and placement of senior financial executives and staff at alternative investments companies.

"It was clear to us from our daily interactions with clients, that's a time of unprecedented opportunity for talented individuals looking for an exciting career in the hedge fund industry."

Findings are summarized in "The Compensation Conundrum," co- authored by Russ Alan Prince, a leading authority and counselor on private wealth, and Hannah Shaw Grove, a widely recognized expert on behaviors and finances of high-net-worth individuals.

"The Compensation Conundrum" also provides 2007 total compensation projections for key non-investment roles at hedge fund organizations, including CFO, COO and Controller. Figures are composed of base salary and bonus. "Our compensation figures offer ranges for total compensation by position and will serve as a benchmark for future research." said Todd Noah.