CHICAGO, July 13, 2006 – Horizon Cash Management LLC, a leading cash
manager for alternative investment funds, today announced the results of
“The 2006 Survey of Best Practices in the Hedge Fund Industry.” 

The survey is the most ambitious of the three major research projects
Horizon has commissioned since 1998.  “The 2006 Survey of Best
Practices in the Hedge Fund Industry” touched upon a broad spectrum of
issues relating to best practices for hedge funds.  Alternative
Investment Management Association (AIMA) and Managed Funds Association
(MFA), the two best-known hedge fund trade associations, contributed to
the survey, as did several other leading organizations, including Custom
House, DPM Mellon, FIMAT, IMS Consulting and Walek & Associates.

 “We believe that the results of this survey will be extremely useful
for hedge funds,” said Diane Mix, President and Principal, Horizon
Cash Management.  “We are just beginning to scratch the surface in
terms of analyzing the data and will be able to share more important
findings throughout the year. It is encouraging to see so many of the
best practices recommended by industry trade associations and leading
experts being broadly implemented.”

A sample of diverse results that were revealed from the survey is as
follows:

* 85% of respondents employ an independent third-party
administrator
* 80% have a pricing and valuation policy with the valuation
process far more likely to be entrusted to fund administrator
* 85% of respondents maintain a Policies and Procedures Manual or
Code of Ethics
* 64% reports a risk management function separate and distinct
from the investment process
* 63% of firms that offer side letters don’t disclose this to
all investors
* 45% of respondents manage cash via Money Market Account and
other passive cash management strategies
* 36% don’t have a succession management plan
* 37% claim not to have any capacity constraints

Note to editors:

– 2000 hedge fund managers were invited to participate in the
online survey, conducted, compiled and tabulated by The Guild Group. 
– Horizon received a response rate of 10%.  Respondents represent
approximately 800 funds worldwide.
– 57% of the hedge fund managers reported that they have funds
that are based in the US.  16% in UK, 11% in Europe and 13% in Asia.
– Nearly three-quarters (71%) of the funds surveyed have been in
business 3 to 10 years and half of these funds have existed for 6 or
more years.

Further details on the survey are available upon request.

Established in 1991, Chicago-based Horizon Cash Management LLC
(www.horizoncash.com) provides customized portfolio and treasury
services to hedge funds, managed futures funds and other institutional
clients worldwide.  With more than $3.5 billion in assets under
management, Horizon seeks to maximize cash balance returns while
providing treasury services.  Horizon is a registered investment adviser
with the US Securities and Exchange Commission.
 
                                                                       
       

Sophie Sophaon l Walek & Associates l Office: 212.590.0522 l Cell:
202.270.4870 l ssophaon@walek.com