Fueled by broad performance rally Hedge Fund Industry assets again hit record in 3rd quarter 2003

Date: Wednesday, November 19, 2003

Hedge Fund Research, Inc. (HFR), today released its Quarterly Industry Report for the third quarter of 2003. As detailed in the report, hedge fund industry assets under management again hit new highs, with strong investment performance overcoming a moderate $5.5 billion in net outflows. Total assets for the industry grew by 3.34 percent in the third quarter from $665.2 billion to $687.5 billion. Year-to-date, hedge fund industry assets are up 10.47 percent. Third quarter growth was due primarily to a broad-based performance rally reflected in the strong 4.32 percent return of the HFRI Fund-Weighted Composite Index. Top performing categories for the period included HFRI Emerging Markets Index, which gained 10.28 percent; HFRI Equity Hedge Index, with 5.50 percent growth; and HFRI Macro Index, up 5.38 percent. “Year-over-year, the industry has continued to gain net new assets, with total inflows totaling approximately $54 billion on a trailing 12-month basis” stated Joshua Rosenberg, President, HFR, Inc. “The fund of funds sector has proven to be the single most attractive category to investors, posting positive inflows for both the quarter and the trailing 12 months.”