The Greenwich Alternative Investments’ global hedge fund index was up 12.07 percent for 2006. It returned 1.49 percent, and the S&P 500 returned 15.79 percent. The S&P 500 was up 15.79 percent for 2006.
“Hedge funds have been a consistent source of returns with significantly lower risk than that typically associated with equities,” says Ben Rossman, the general manager of the group. “They have outperformed equities over the last five years, with about one-third the volatility. During this period the Greenwich Global Hedge Fund Index had annualised returns of +9.23 percent with volatility of 4.6 per cent versus the S&P’s annualised performance of +6.18 percent with volatility of 12.4 per cent.”