January 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 calculated hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted positive returns in the first month of 2009.

Both merger arbitrage and event driven started off the year with net-of-fee gains of 1.62% and 1.23%, respectively. Distressed securities continued to slide, falling -3.66% for the month of January.

The equity long/short and equity market neutral strategies were suspended on November 3, 2008 and the convertible arbitrage strategy was suspended on January 2, 2009. It has not been determined when calculation of these benchmarks will resume.

On a float-adjusted basis, the Dow Jones Wilshire 5000, the only broad measure of the domestic equity market, returned -8.17% (-8.14% on a full-cap basis) in January.

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index returned 0.81% this month.

Finally, the Dow Jones Wilshire Global Index, the broadest measure of global equity markets, posted a -8.34% return in the first month of 2009.

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

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