Hedge Funds Extend Gains Through Fifth Month: Cogent Dynamic Averages Show Hedge Funds Up 1.9% in March 2006

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With nearly 3000 alternative investments reporting results for the month of March 2006, the average hedge fund has gained a strong 1.897% for the month. Privately placed securities investment strategies (PIPEs, private equity and other investments through unregistered transactions) posted the greatest advances for the month (6.544% for Regulation D strategies and 5.350% for Private Equity strategies) but almost all alternative investment strategies posted gains. Only three strategies - Currency Trading, Equity Income and Fixed Income strategies - declined in March. The average hedge fund is up 5.282% for the year to date.

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 April 17, 2006, and with nearly 3000 entities now reporting results for March 2006, the Cogent Dynamic Averages for the major investment strategy classifications are as follows:

All Funds:

March: 1.897%

Year to Date: 5.282%

Full Year 2005: 8.888%

Single-manager ex futures funds:

March: 1.849%

Year to Date: 5.682%

Full Year 2005: 10.724%

All Single-manager funds:

March: 1.944%

Year to Date: 5.423%

Full Year 2005: 9.957%

Arbitrage strategies:

March: 1.191%

Year to Date: 4.087%

Full Year 2005: 5.212%

Event-driven strategies:

March: 2.236%

Year to Date: 6.104%

Full Year 2005: 8.542%

Fixed income strategies:

March: 0.415%

Year to Date: 2.468%

Full Year 2005: 5.919%

Long/short strategies:

March: 2.354%

Year to Date: 6.189%

Full Year 2005: 11.719%

Macro strategies:

March: 1.627%

Year to Date: 4.690%

Full Year 2005: 9.569%

Multi-fund strategies:

March: 1.758%

Year to Date: 5.020%

Full Year 2005: 6.950%

Sector strategies:

March: 1.569%

Year to Date: 9.642%

Full Year 2005: 21.745%

Trading strategies:

March: 2.172%

Year to Date: 2.882%

Full Year 2005: 4.824%

Alternative investments achieved generally positive returns in March. Only three of the four dozen investment strategies tracked by the CogentHedge application (Currency Trading, Equity Income and Fixed Income strategies) posted losses for the month. March represents the fifth consecutive positive month. Alternative investments continue to illustrate the value show why they deserve a prominent position in a professional investor's portfolio.

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

Year to Date 2006

% Gain

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

Regulation D Strategies

15.781%

Strategic Block/Activist Strategies

13.414%

Emerging Market Equity Strategies

12.178%

Opportunistic Trading Strategies

11.183%

Industry/Sector Specific L/S Strategies

9.172%

Value Strategies

7.334%

Index Arbitrage Strategies

7.098%

Real Estate Strategies

7.042%

Opportunistic Equity Strategies

6.914%

Growth Strategies

6.621%

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 5200+ 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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