Hedge Fund Association Launches Web Site - 06/28/01

NASSAU ? The Hedge Fund Association, the industry?s premier professional network, is pleased to announce today that it has re-launched its World Wide Web site under the URL www.thehfa.org.
        
The site is a clearinghouse of information and networking opportunities for individual and institutional investors as well as hedge fund managers and service providers.   Among the features of the site are hedge fund news, a member message board, a calendar of industry conferences, and detailed articles on the various hedge fund strategies.
        
Nearly $7 billion flowed into hedge funds in the first quarter of 2001 ? almost as much new money as in the whole of 2000. With the surge in popularity, the need for an association and its accompanying Web site to serve the industry has taken on added importance.

?As hedge funds become increasingly significant as a viable investment alternative, we believe it is important to educate people on all aspects of investing in hedge funds, including both the opportunities and risks involved,? said Dion Friedland, founding president of the association and chairman of Magnum Funds.

The Hedge Fund Association is an international not-for-profit association of hedge fund managers, funds of hedge funds, service providers, and investors formed to unite the hedge fund industry and foster better awareness of hedge funds. Its board consists of a ?Who?s-Who? in the hedge fund industry.

Hedge funds refer to funds that can use one or more alternative investment strategies, including hedging against market downturns, investing in asset classes such as currencies or distressed securities, and utilizing return-enhancing tools such as leverage, derivatives, and arbitrage. There are approximately 5000 hedge funds worldwide today, a number that is growing with both the investing public?s interest in investments able to withstand bear markets and mutual fund managers? attraction to the higher fees and entrepreneurial independence.

?At a time when world stock markets appear to have reached excessive valuations and may be due for further correction and volatility, hedge funds provide a viable alternative to investors seeking capital appreciation as well as capital preservation in bear markets,? Friedland explains. ?The vast majority of hedge funds make consistency of return, rather than magnitude, their primary
goal.?

Still, hedge funds suffer from misperceptions about high risk and volatility fueled in large part by media focus on sharp moves made by global macro hedge funds. Accordingly, one of the missions of the HFA is to educate the investing public and legislators around the world on the true benefits as well as potential risks associated with investing in the different hedge fund strategies.
   
Other objectives include:
-- setting industry standards for fund administrators and other service providers who collect, collate, and analyze information related to hedge funds
-- providing a forum for the exchange of ideas to improve the effectiveness of association members
-- lobbying successfully at government levels in different countries to ensure that a wider universe of investors have access to hedge funds; and
-- directing public relations for the hedge fund industry.

For more information on the association or the web site, including how to join the HFA, please contact Friedland at dfriedland@hedgefundassn.org or visit www.thehfa.org