November 2005 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

Five of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted gains in November. Convertible arbitrage was the only benchmark down for the month and is the only strategy in drawdown for 2005.

Convertible arbitrage was down -0.83% for the month and -5.66% for the year.

Equity long/short (U.S.) posted gains of 2.56% for the month making it the best performer in November. The strategy is up 1.99% on a YTD basis.

Distressed securities returned 0.53% for the month and with cumulative gains of 5.50%, this strategy is still the leader on a YTD basis.

Event driven was up 1.67% for the month raising its YTD gains to 5.34%.

Equity market neutral gained 0.22% over the month boosting its return to 1.41% for the year.

Merger arbitrage was up 0.61% for the month and 2.16% for the year.

On a float-adjusted basis, the Dow Jones Wilshire 5000 gained 3.99% (4.03% on a full-cap basis) for the month of November increasing the cumulative YTD gains of the domestic broad equity markets to 6.23 % (6.22% on a full-cap basis).

The fixed income asset class as measured by the Dow Jones Corporate Bond Index returned 0.66% pushing its YTD return of 0.11% into positive territory for the year.

The Dow Jones World Total Market Index rose 3.59% in November, enhancing the cumulative gains of the world equity markets to 8.75% for 2005.

Note: November 2005 figures for the Dow Jones Hedge Fund Strategy Benchmarks are based on daily estimates net of fees. Final performance figures for November 2005 will be available towards the end of December. The methodology used to calculate the Dow Jones Hedge Fund Strategy Benchmarks is available on www.djhedgefundindexes.com .

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