Emerging Markets Continue to Lead: Cogent Dynamic Averages Show Emerging Market Equity Funds Gain 7.223% on Average in January 2006

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With over 2500 alternative investments reporting results for the month of January 2006, the average hedge fund has gained a strong 3.087% for the month. Emerging market equity funds lead the universe but only two strategies -- options strategies and credit spread arbitrage -- posted declines for the month. Coming on the heels of a full year 2005 gain of 8.728%, alternative investments in general are staging a positive start for 2006.

Cogent Investment Research LLC, the operator of the free CogentHedge online alternative investment information and performance analysis resource for investment professionals worldwide (http://www.cogenthedge.com), reports that as of February 15, 2006, and with over 2500 entities now reporting results for January 2006, the Cogent Dynamic Averages for the major investment strategy classifications are as follows:

All Funds:

January: 3.087%

Full Year 2005: 8.728%

Single-manager ex futures funds:

January: 3.302%

Full Year 2005: 10.555%

All Single-manager funds:

January: 3.185%

Full Year 2005: 9.794%

Arbitrage strategies:

January: 1.937%

Full Year 2005: 4.680%

Event-driven strategies:

January: 2.744%

Full Year 2005: 8.244%

Fixed income strategies:

January: 1.228%

Full Year 2005: 5.580%

Long/short strategies:

January: 3.815%

Full Year 2005: 11.795%

Macro strategies:

January: 3.558%

Full Year 2005: 9.388%

Multi-fund strategies:

January: 2.817%

Full Year 2005: 6.876%

Sector strategies:

January: 5.482%

Full Year 2005: 21.501%

Trading strategies:

January: 1.782%

Full Year 2005: 4.592

Alternative investments achieved generally positive returns in January. Only two of the four dozen investment strategies tracked by the CogentHedge application (Options Strategies and Credit Spread Arbitrage) posted losses for the month. January represents the third consecutive positive month. Alternative investments continue to show why they deserve a prominent position in a professional investor's portfolio. December and January showed strong back-to-back broad-based gains for the 4,800+ alternative investments reporting to the CogentHedge database. In addition, the overall volatility of alternative investments has declined over the past several months.

The top ten investment strategies for the year are as follows:

Full Year 2005

% Gain

=============

Emerging Market Equity Strategies

31.734%

Regulation D Strategies

24.762%

Opportunistic Trading Strategies

23.747%

Sector Strategies

21.501%

Private Equity Strategies

18.104%

Industry/Sector Specific L/S Strategies

16.843%

Growth Strategies

14.103%

General Long/Short Strategies

14.013%

Index Arbitrage Strategies

13.975%

Long/Short Strategies

11.795%

Current data can be found at http://www.cogenthedge.com/home/inv_strategy.asp.

For more information, come to http://www.cogenthedge.com. Once registered as a qualified accredited investor, you will have full and free access to a comprehensive set of statistical analyses and performance metrics in respect of these investment strategies as well as all alternative investments in the CogentHedge database.

David Slavin

Managing Director

Cogent Investment Research LLC

+1 609 945-0629

http://www.cogenthedge.com

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David Slavin