Lehman Brothers to Launch Hedge Fund Indices in Collaboration With Hedgefund.net

Lehman Brothers to Launch Hedge Fund Indices in Collaboration With Hedgefund.net

NEW YORK, Jan. 27 /PRNewswire/ -- Lehman Brothers, the global investment bank, today announced plans to launch a series of hedge fund indices based on the HedgeFund.net (HFN) database, owned and operated by HedgeFund.net, a division of Channel Capital Group Inc. The Lehman Brothers offering includes both broad market benchmarks and various investible indices. The new Lehman HFN Hedge Fund Indices will be available to approved investors during the second quarter of 2005.

The broad market indices will be constructed using objective criteria to minimize biases present in other hedge fund indices. Quantitative techniques, similar to those employed by Lehman Brothers when comparing a portfolio to the U.S. Aggregate Index, will be used to ascertain an appropriate investment style characterization.

"The addition of Hedge Fund benchmarks to our Global Family of Indices will provide investors with new performance measures, using time-proven rules- based construction methodologies, for this quickly growing market segment," said Steve Berkley, Managing Director and Global Head of Index Products at Lehman Brothers. "Our association with HedgeFund.net ensures that the indices will be constructed using the best data available."

"Our unique quantitative experience and risk management expertise will help our team identify the most appropriate style categorization for the hedge fund asset class," adds Anthony Gould, Senior Vice President in the Quantitative Portfolio Strategies group. "This approach should enable investors to gain a better understanding of the risk exposures embedded in hedge funds."

"We are pleased to be working with Lehman Brothers on the next generation of Hedge Fund Indices," said Donald C. Cacciapaglia, Chairman and Chief Executive Officer of HedgeFund.net. "World-class indices require a world- class database. The market expertise of our two firms will facilitate the creation of a new standard for investors."

About Lehman Brothers

Lehman Brothers has more than 30 years of experience in structuring bond indices. The Firm's indices are the most widely accepted benchmarks in the asset management industry, used by over 90 percent of U.S. institutional investors, a majority of large European investors, and a growing share of Asian-Pacific managers. Lehman Brothers has been the top-ranked bond index provider each year since rankings began in 1997 in Institutional Investor magazine's annual investor poll.

Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private equity, and private client services. The Firm is headquartered in New York, London, and Tokyo and operates in a network of offices around the world. For further information about Lehman Brothers' services, products, and recruitment opportunities, visit our Web site at http://www.lehman.com/.

About HedgeFund.net

HedgeFund.net (HFN) is a leading source for hedge fund news and performance data on the Web. Investors who meet HedgeFund.net's accreditation standards are eligible for access to the site's database of more than 4,100 hedge funds, funds-of-funds and CTA/managed futures vehicles. HFN serves a rapidly growing user base of more than 40,000 accredited investors worldwide. Registered users include a wide range of institutional investors as well as high-net-worth individuals. Investors use HedgeFund.net as an invaluable source for up-to-the-minute news, useful commentary and essential data on hedge funds. Fund managers who participate in the database can opt for various levels of transparency and visibility to a large global accredited investor base. For more information or to register, please go to http://www.hedgefund.net/.

HedgeFund.net is not an affiliate of Lehman Brothers Inc.


Media Contacts: Tasha Pelio - U.S.
212-526-0983

Mary Matthewson - London
44-207-102-2191

Jackie Kestenbaum - Tokyo
81-3-6440-3110



Source: HedgeFund.net

CONTACT: Tasha Pelio - U.S., +1-212-526-0983, or Mary Matthewson -
London, +44-207-102-2191, or Jackie Kestenbaum - Tokyo, +81-3-6440-3110, all
for HedgeFund.net

Web site: http://www.hedgefund.net/


-------
Profile: intent