July 2009 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 four hedge fund strategies published by Dow Jones Hedge Fund Indexes posted net-of-fees gains in July 2009.

Considering the high volatility the market has faced in the past 7 months, hedge funds showed only small positive returns for the month.

Event driven, the strongest performer for the month has a gain of 1.35% for the month of July, and now sits atop the other strategies for the year with a 7.69% return. Conversely, Equity Market Neutral posted a small gain of only 0.27% for the month of July and a loss of -3.11% for the year. This was the only strategy to post a loss YTD.

The two remaining strategies Merger arbitrage and Equity long/short showed modest gains of 0.19% and1.47%, respectively in July.

Convertible arbitrage was suspended on January 2, 2009 and remained suspended through the month of July.

Distressed Securities was suspended on May 4, 2009 and remained suspended through the month of July.

On a float-adjusted basis, the Dow Jones U.S. Total Stock Market Index, the only broad measure of the domestic equity market, returned 7.81% in July bringing its YTD gain of 12.63%.

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index gained 4.59% this month for a gain of 13.21% for the year.

Finally, the Dow Jones Global Total Stock Market Index, the broadest measure of global equity markets, was up an impressive 8.75% for the month giving the index a positive YTD gain of 20.72% for 2009.

Note: July 2009 figures for the Dow Jones Hedge Fund Strategy Benchmarks are based on daily estimates net of fees. Final performance figures for July 2009 will be available towards the end of August 2009. The methodology used to calculate the Dow Jones Hedge Fund Strategy Benchmarks is available on www.djhedgefundindexes.com.

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