Hedge Fund Performance Commentary for the Month of August 2012

September 2012

Introduction Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund 1 Index gained 0.63% during the month. Market sentiment was optimistic for most of the month with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. 2 The MSCI World Index was up by 1.64% in August. Most asset classes posted excellent gains during the month amid an environment of resurgent risk 3 appetite to the markets. The BofA-ML High Yield Index was up 1.21% in August while the S&P 4 Goldman Sachs Commodity Index gained 6.37% during the month. The year-to-date (YTD) returns of the Eurekahedge Hedge Fund Index currently stand at 3.16%, while the MSCI World Index is up 7.79% YTD. While this may seem like an underperformance, hedge funds have provided these returns with less than a third of the monthly volatility witnessed in global markets. August 2012 and July 2012 returns
1.5% 1.0% 0.5% 0.0% (0.5%) (1.0%) North America Europe Japan Asia ex-Japan Latin America Aug-12 Eurekahedge Hedge Fund Index

Jul-12 Source: Eurekahedge

Most regional mandates finished the month in positive territory with managers allocating to the Americas leading the way. The Eurekahedge Latin American Hedge Fund Index was up 0.98% while North American managers gained 1.06% during the month. Although the markets posted a drop at the start of the month ...

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1 2 3 4

Based on 57.74% of funds which have reported August 2012 returns as at 17 September 2012 The MSCI AC World Index All Core – Local Currency Bank of America Merrill Lynch US High Yield Master II Index (Total Return Index, in Local Currency) S&P Goldman Sachs Commodity Index Total Return


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