April 2007 Performance Review Of The Dow Jones Hedge Fund Strategy Benchmarks - A Monthly Report From Dow Jones Indexes On The Performance Of The Dow Jones Hedge Fund Strategy Benchmarks

All of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted net-of-fees gains in April 2007.

With net-of-fees returns of 2.74% and 2.34%, respectively, the equity long/short and event driven strategies had the best performance in April. and merger arbitrage followed with returns of 1.37% and 1.04%. Equity market neutral and convertible arbitrage had gains of 0.43% and 0.23% for the month.

Year to date, four of the six strategies have posted net-of-fees returns greater than 5% with merger arbitrage leading with a cumulative gain of 7.53%. Equity long/short is in second place with a YTD return of 6.92%. Distressed securities and event driven are tied for third place with YTD returns of 5.67% and 5.68%—a difference of 1 basis point. The remaining two strategies, convertible arbitrage and equity market neutral, are up 2.13% and 1.69% for the year.

On a float-adjusted basis, the Dow Jones Wilshire 5000, the only broad measure of the domestic equity market, returned 4.00% (3.86% on a full-cap basis) in April, making a significant contribution to its YTD gain of 5.46% (5.40% on a full-cap basis).

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index, gained 0.95% this month for a cumulative gain of 2.59% for the year.

Finally, the Dow Jones Wilshire Global Index, the broadest measure of global equity markets, was up 4.37% for the month increasing its YTD gains to 7.44% for 2007.

Note: April 2007 figures for the Dow Jones Hedge Fund Strategy Benchmarks are based on daily estimates net of fees. Final performance figures for April 2007 will be available towards the end of May 2007. The methodology used to calculate the Dow Jones Hedge Fund Strategy Benchmarks is available on www.djhedgefundindexes.com .