February 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

Two of the three hedge fund strategies published by Dow Jones Hedge Fund Indexes posted negative returns for the month of February.

Relative to the overall market, hedge funds performed fairly well for the month. While other broad measurements of the market fell, event driven finished February with a gain of 0.26% and increased its YTD performance to 1.50%.

Merger Arbitrage was down slightly with a return of -0.50%, but remains in positive territory for the year with a YTD gain of 1.11%. Distressed securities continued to decline for the year, losing -1.54% and bringing its YTD loss to -5.15%.

Equity long/short, equity market neutral and convertible arbitrage remained suspended through the month of February.

On a float-adjusted basis, the Dow Jones Wilshire 5000, the only broad measure of the domestic equity market, returned -10.40% (-10.04% on a full-cap basis) in February and lowered its YTD performance to -17.72% (-17.36% on a full-cap basis).

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index returned -2.09% this month and its cumulative return for 2009 stands at -1.29%.

Finally, the Dow Jones Wilshire Global Index, the broadest measure of global equity markets, posted a return of -9.66% in the second month of 2009 and has a year-to-date loss of -17.20%.

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