Hedge Funds and CTAs Rebound in May

Barclay/GHS Index Up 1.03 Percent, CTAs up 1.66 Percent

Fairfield, Iowa, June 9, 2005 -- The Barclay Group released today Barclay Index Flash Estimates for May 2005. With more than 1100 funds reporting May returns, the Barclay/Global HedgeSource Hedge Fund Index gained 1.03 percent while the Barclay CTA Index gained 1.66 percent. Barclay is the world's leading provider of hedge fund and managed futures data.

"During the month of May, the financial press was abuzz with stories of impending hedge fund doom resulting from the cross-currents created by the downgrade of General Motors debt coupled with large purchases of GM's stock by Mr. Kerkorian," says Sol Waksman, president of The Barclay Group. "It would seem that the obituaries may have been a bit premature."

During May, 13 of 18 hedge fund strategies were profitable, reversing April's losses in many sectors. The Technology Index jumped 4.88 percent, offsetting a 3.03 percent loss in April. Equity Long Bias gained 2.92 percent, and Global Macro 1.86 percent. Equity Short Bias was May's biggest loser, down 3.43 percent, giving back most of its 3.56 percent gain in April.

In Managed Futures, the Barclay CTA Index was up 1.66 percent in May with 73 percent of funds reporting. All six of Barclay's managed futures sub indices showed gains. The Diversified Traders Index led the way with a 2.00 percent gain, followed by Systematic Traders at 1.79 percent, and Financials & Metals Traders up 1.38 percent. The Barclay BTOP50 Index, which measures the performance of the largest traders, rose 1.67 percent.

For more commentary, call Sol Waksman at 641-472-3456, or email sol@barclayhedge.com.

Visit www.barclaygrp.com to view or download seven years of Barclay/GHS Hedge Fund Index data, or 18 years of Barclay BTOP 50 Index data.

The Barclay Group, founded in 1985, actively tracks more than 4400 hedge funds and managed futures programs. The Barclay/Global HedgeSource hedge fund indexes are utilized worldwide as performance benchmarks for the hedge fund industry.