February 2011 Hedge Fund Performance Commentary
Hedge funds were up for the seventh consecutive month in January, posting a marginal result of0.06%
for the month. Price movements in global markets were erratic in a month marked by variousthemes including improving economic fundaments in the US, political instability in the Middle East andrising inflationary pressure. The MSCI World Index was up 1.87% in January.Japanese hedge funds delivered the best performance among the main hedge fund regions, gaining1.26% in January. Managers leveraged on the better-than-expected earnings, corporate activity and astrong yen to outperform the Nikkei 225, which was up 0.09% during the month. Returns from otherdeveloped economies were also positive, with the
Eurekahedge North American Hedge Fund Index
gaining 0.75% while European hedge funds were up 0.24%. Stronger outlook on the US economy, aswell as easing concerns on the European debt situation, drove up the regional markets
the S&P 500climbed 2.26% while the MSCI Europe Index gained 1.83% during the month.Returns from emerging markets hedge funds were mixed as Latin American hedge funds witnessedmarginal losses of 0.10% while Asia ex-Japan funds were down 1.20% in January. The regionalmarket indices also ended the month in negative territory. The MSCI EM Latin America Index wasdown 4.17% while the MSCI AC Asia Pacific Ex Japan Index lost 0.59%. Notable among emergingmarket hedge funds were managers investing in Eastern Europe & Russia, who gained 2.20% duringthe month. Eastern Europe & Russia mandate hedge funds capitalised on the rallies in underlyingmarkets as the MSCI EM Eastern Europe Index was up 1.52% while the Russia AK&M CompositeIndex finished the month with an excellent gain of 5.68%.
December 2010 and January 2011 returns
The relatively modest returns across the regions came after a period of strong performance by hedgefunds at the end of 2010. The
Eurekahedge Hedge Fund Index
Based on 54.19% of funds reporting the January 2011 returns as of 14 February 2011.
(2%)(1%)0%1%2%3%4%5%North America Europe Japan Asiaex-JapanLatinAmericaEurekahedgeHedge FundIndex