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8 Apr 2009

Bank of NY Unit Expands Hedge Fund Consulting Services

Pershing LLC has expanded their business consulting services by including a hedge fund start-up simulator tool and a new guidebook to assist hedge fund managers with the launch of new funds. Pershing is a subsidiary of The Bank of New York Mellon Corporation BK.

Pershing Prime Services' Hedge Fund Start-Up Simulator was developed in collaboration with Moss Adams LLP. It provides hedge fund managers with detailed information about the infrastructure and financial workings of a hedge fund, especially during its first 18 months of operation, including the launch.

Pershing Prime Services' new guidebook entitled, A Guide to Establishing a Hedge Fund, was created in conjunction with The Bank of New York Mellon and offers an introduction to a number of critical criteria, as well as a framework for making informed business decisions.

Pershing and The Bank of New York Mellon leveraged a wide network of industry specialists to develop the guidebook, including Moss Adams, Eze Castle Integration, Inc., Stark & Stark Attorneys At Law and Sasserath & Zoraian LLP, as well as its in-house experts.

Hedge Funds Increase 1.37% In March

March was a challenging month for hedge funds, which entered the month with tight net exposures, according to research by hedge fund consultant Hennessee LLC.

Technology and healthcare/biotech were bright spots for managers, as these sectors were relative outperformers. While the strong equity rally did cause short squeezes, most hedge fund managers expect short portfolios to generate profits in the near term.

The Hennessee Hedge Fund Index advanced +1.37% in March (+1.09% YTD), while the S&P 500 advanced +8.54% (-11.67% YTD).

“Most funds were caught with tight net exposures and were unable to participate in the rally," Charles Gradante, Co-Founder of Hennessee Group said, "Managers were also hurt as the sectors they have been heavily short, such as financials, consumer discretionary and materials, were the sectors that rallied the strongest.”

“Despite the underperformance in March relative to the equity benchmarks, hedge funds are still outperforming for the year,” said Lee Hennessee , Managing Principal of Hennessee Group. “We expect that we will continue to see volatility throughout the year.”