Hennessee Hedge Fund Index Advances 0.51% In December

Date: Friday, January 9, 2009
Author: Joseph Checkler, Dow Jonew Newswire

Hedge funds gained a modest 0.51% in December, meaning they fell 19.15% for the year, according to data from hedge fund adviser Hennessee Group LLC.

Hedge funds' December gain was roughly the same as that of the Dow Jones Industrial Average, which rose 0.57% for the month.

"While the Hennessee Hedge Fund Index is down 19% this year, it has significantly outperformed equity benchmarks on a relative basis - by almost 20% ," said Hennessee Managing Principal Lee Hennessee in a statement.

December was the first positive month for hedge funds in the index since May, and marked only the fourth positive month in 2008.

2008 was by far the worst year ever for hedge funds in the Hennessee index, which started in 1987. The only other down year was 2002, when it fell 2.89%. In 2007, hedge funds in the index rose 11.64%.

-By Joseph Checkler, Dow Jones Newswires; 201-938-4297; joseph.checkler@ dowjones.com