GlobalBriefing

HedgeFund Intelligence

Volume 3 Issue 11 September 2010

A HedgeFund Intelligence publication

HEDGE FUND INDUSTRY GLOBAL NEWS ROUND-UP • RESEARCH • ABSOLUTE UCITS • DATA

Macro indicators fuel spread of anxiety
GLOBAL INDICES (EST)
Strategy Equity Macro Managed Futures Event Driven Emerging Market Debt Emerging Market Equity Global UCITS HFI Global Composite Medians Aug-10 YTD -0.80% 1.10% 2.01% 0.13% 0.73% 0.14% 0.13% 0.29% -1.07% 3.07% 1.87% 2.75% 5.90% -1.02% 0.52% 1.76% Means Aug-10 -0.87% 1.54% 2.98% -0.51% 0.76% 0.24% -0.10% 0.27% YTD -0.40% 2.38% 2.92% 2.15% 7.54% 0.13% -0.54% 1.63%

GLOBAL SUMMARY
August, unlike July, offered no respite for markets as bourses around the world fell as investors sold equities for the safety of treasuries and gold. Markets switched their focus from July’s strong micro results to discouraging macro indicators, which caused renewed anxiety over a sluggish recovery and possible double-dip recession. The US, which remains a core concern for investors, saw a steady flow of gloomy data with soft housing figures, poor retail sales and business sentiment – all of which point to a fragile recovery. Europe, while appearing stable, had mixed data with a clear north/south divide still evident; China saw further tightening in property and a slowing of growth, while Japan saw its currency hit a 15-year high. Despite a challenging month, hedge funds did what they do best in August, with managers performing relatively better than their underlying benchmarks in the drawdown. The Hedge Fund Intelligence Composite was up 0.29% on the month, far better than the MSCI World, which was down 3.73%, the S&P 500 (down 4.74%), FTSE 100 (down 0.62%), Nikkei (down 7.48%) and Hang Seng (down -2.35%). Hedge funds are now up nearly 2% for the year, while the MSCI World has fallen over 6%. Looking ahead, it seems markets will remain nervous and volatile until some macroeconomic clarity becomes evident, which hopefully shows the production lines in the East continue to grow, and that any demand gap left by fading government support can be picked up by businesses and households.

GLOBAL COMPOSITE MEDIAN INDICES
% 350 300 250 200 150 100 50 0 -50

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MSCI World Index - Net HedgeFund Intelligence Global Index - Macro HedgeFund Intelligence Global Index - Managed Futures HedgeFund Intelligence Global Index - Event Driven HedgeFund Intelligence Global Index - Equity HedgeFund Intelligence Global Index - Emerging Market Equity HedgeFund Intelligence Global Index - Emerging Market Debt HedgeFund Intelligence Global Index - Composite

CONTENTS
1 Global summary 3 The Americas summary Markets experience worst August in nine years 4 Europe summary Fears of a double-dip recession hit markets 5 Asia-Pacific summary Japan is worst-performing strategy in August 6 Funds of funds summary Mandates pick up as pension funds restructure 8 Absolute UCITS Latest UCITS III developments 9 Research H1 2010 Asia-Pacific launches show strength 11 Data Absolute UCITS proves a draw for database 12 Latest weekly news

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Covering the single manager hedge fund industry in the Americas

Markets experience worst August in nine years
ABSOLUTE RETURN INDICES (EST)
Strategy Mixed Arbitrage Index Commodities Index Convertible & Equity Arbitrage Index Credit Index Distressed Index Event Driven Index Fixed Income Index Global Equity Index Latin American Debt Index Latin American Equity Index Macro Index Managed Futures Index Mortgage Backed Securities Index Multi-Strategy Index Technology Index U.S. Equity Index Absolute Return Composite Index Medians Aug-10 YTD 1.12% 1.08% 1.42% 0.61% 0.24% 0.00% 0.90% 0.10% 0.40% 1.37% 1.39% 1.90% 0.50% 0.32% -1.43% -1.77% 0.42% 2.83% -0.90% 5.41% 7.06% 6.44% 4.36% 6.26% -0.03% 3.70% 4.26% 3.45% 1.97% 6.39% 2.76% 0.81% -1.67% 2.70% Means Aug-10 1.46% 2.07% 1.54% 1.03% 0.39% -0.83% 0.98% -0.47% 0.00% 0.59% 1.77% 3.00% 1.19% 0.20% 0.28% -1.69% 0.59% YTD 4.27% 0.67% 6.08% 8.76% 7.12% 2.52% 6.59% -0.34% 3.75% 4.43% 2.62% 3.17% 8.59% 1.59% 4.04% 0.57% 2.71%

MARKET EVENTS

• Bernanke reveals Fed’s readiness to boost US economy • Losses within housing sector impact on unemployment figures • Retail investors continue retreat from equity markets • Department of Commerce downgrades expected US growth figures • SEC promises stricter overview and enforcement against Wall Street
HEDGE FUND STRATEGIES
Equities Equity markets fell in August as weak macroeconomic data
reversed many of the gains made in July. Following the downward revision of second-quarter GDP growth from 2.4% to 1.6%, investors grew more cautious at the economy’s sluggish rate of recovery and moved out of equities into fixed income. US and Global Equity funds returned an estimated -1.77% and 0.10% respectively, while Tech funds returned an estimated -1.43%. The S&P 500 Index ended the month down -4.74%, its ninth reversal this year.

ABSOLUTE RETURN MEDIAN INDICES VS MSCI WORLD INDEX AND S&P 500
% 300 250 200 150

Credit The Absolute Return Credit Index returned an estimated 0.61%
in August, bringing the year to date to 7.06%. Managers capitalised on some refinancing activity and gained the highest absolute returns during the month through a number of positions across loans and bonds. Gains were also made through short positions in the Retail and Media industries. Managers within this strategy expect volatility to remain high.

Commodities/CTA Commodity-based funds and CTAs returned an
100 50 0 -50

estimated 1.08% and 1.90% respectively. The decelerating rate of growth allowed funds with long positions in government bond futures to perform well. Crude oil and corn both proved to be profitable markets, with managers taking advantage of the significant move within corn during August. Some funds that performed well were able to do so by correctly anticipating movement in the energies and currencies markets, while others benefited from the rally in US fixed-income futures.

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S&P 500 MSCI World Absolute Return Composite Index Absolute Return Global Equity Absolute Return U.S. Equity

Macro Funds within the Macro space returned an estimated 1.39%
during August, those that remained cautious in their outlook performing well despite the market’s reversal. Gains were made by managers through long positions in the Brazilian Real and Japanese Yen. However, the positive correlation of currencies such as the Canadian and Australian Dollar with equities led to those with long positions in these currencies suffering. As investors remain cautious, some managers plan to utilise tactical trading as a way to profit from short-term market dislocations.

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September 2010 3

Covering the single manager hedge fund industry in Europe

Fears of a double-dip recession hit markets
EUROHEDGE INDICES (EST)
Strategy European Equity USD European Equity GBP European Equity EUR Macro USD Fixed Income USD Global Equity USD Managed Futures USD Credit USD Currency Event Driven USD Mixed Arbitrage & Multi Strategy USD Equity Market Neutral & Quantitative Strategies USD Convertible & Equity Arbitrage USD Emerging Market Debt USD Emerging Market Equity USD Absolute UCITS European Equity EuroHedge Composite Medians Aug-10 YTD -0.07% -1.13% 0.16% -0.99% 0.00% 0.00% 1.16% 3.08% 0.74% 5.54% -1.17% -2.79% 2.84% 3.83% 0.93% 6.55% 0.01% 2.63% 0.77% 0.82% 0.04% 2.49% -0.14% 1.33% 0.65% -0.28% -0.38% 0.28% 2.26% 5.85% 5.76% 0.84% -0.25% 1.15% Means Aug-10 -0.33% -0.51% -0.19% 1.21% 0.36% -0.74% 3.60% 0.97% -0.98% 0.48% -0.21% -0.58% 0.49% 0.57% -0.47% -0.38% 0.23% YTD -0.82% -0.70% 0.74% 2.59% 5.98% -3.06% 3.28% 6.48% 3.78% 0.95% 4.40% 1.25% 6.38% 4.78% -0.18% 0.74% 1.11%

MARKET EVENTS

• German Bund yields at all-time low • ECB calls for bids to drain €60.5bn from Eurozone money markets • UK job market slows to its lowest rate for 10 months in August • Greece set to receive €9bn of EuroZone loans
HEDGE FUND STRATEGIES
European Equity The rally in equities of July continued into the first
week of August though, as weak economic data in the US was released, markets sold off as fears of a double-dip recession intensified. In Europe, conflicting data continued to be released with Germany at one end of the spectrum reporting growth for Q2, while the outlook for Greece and Ireland continued to remain bleak. European markets fell during August with the CAC, DAX and MSCI Europe at -4.18%, -3.62% and -2.16% respectively. The UK managed to outperform its equity index peers, down slightly at -0.62%. European hedge funds had a challenging month with the EuroHedge European Equity Index EUR relatively flat for the month and the year. Gains from long positions in pharmaceuticals were offset by long positions in financials and construction.

EUROHEDGE MEDIAN INDICES VS MSCI EUROPE
% 200

Managed Futures After three consecutive months of losses, the
EuroHedge Managed Futures Index posted an estimated median gain of 2.84% for August. As investors moved away from risky assets, gains
150

came from fixed income and bonds – as the yield on German 10-year governments bonds reached new lows. Losses were incurred from copper prices which dropped in August due to poor US housing data, though gains from long positions in wheat – which saw prices rise over weather conditions and short positions in natural gas, helped offset perform-

100

50

ance as the index pushed its return for the year so far to 3.83%.

0

Convertible & Equity Arbitrage With only one down month in the last
20, the EuroHedge Convertible & Equity Arbitrage Index posted another strong month for August up an estimated 1.33% for a yearly return of
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5.85% for 2010. As equities sold off, volatility increased. Convertible bonds proved profitable even as the new issuance market remained closed. Fixed income also outperformed, pushing credit markets higher.

MSCI Europe - Net EuroHedge Composite Index EuroHedge European Long/Short Equity EUR Index EuroHedge Managed Futures USD Index EuroHedge Fixed Income USD Index EuroHedge Macro USD Index EuroHedge Global Equity USD Index

Macro Fears rose during August over the economy, which pushed equity
markets lower and saw investors move to safe-haven assets such as gold. Interest rates fell during the month, and the likelihood they will stay low saw investors move to government bonds. Commodity prices fell in August, though gains from currency – long positions in Yen and short in Euro added to performance. The EuroHedge Macro Index posted an estimated gain of 1.16% for August, returning 3.08% for the year so far.

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September 2010 4

Covering the single manager hedge fund industry in the Asia-Pacific

Japan is worst-performing market in August
ASIAHEDGE INDICES (EST)
Strategy Asia including Japan USD Asia excluding Japan USD Chinese Equity Indian Equity Japanese Equity USD Japanese Equity JPY Australian Equity AUD AsiaHedge Composite Medians Aug-10 YTD 0.62% -0.42% 1.49% 1.11% -2.12% -2.61% -1.09% -0.09% -1.22% -1.90% -3.69% 5.08% -0.80% -0.85% -4.07% 0.57% Means Aug-10 0.33% -0.07% 1.06% 0.78% -2.41% -3.16% -0.84% -0.35% YTD -1.80% -0.32% -3.93% 7.05% -1.79% -2.75% -2.91% 0.08%

MARKET EVENTS

• Yen surges to a 15-year high • Singapore government unveils measures to cool the property market • Taiwan explores trade agreement with Singapore • China overtakes Japan to become world’s second-biggest economy • First hung parliament in Australia in 70 years • Kan’s position as leader of the Democratic Party of Japan under threat
HEDGE FUND STRATEGIES
Australian long/short equity August was a tough month as the
reporting season and federal election outcome were the focus of the

EQUITY BENCHMARKS
Benchmark index MSCI Pacific Free Net MSCI Pacific ex-Japan MSCI China China Shanghai Composite Index Sensex TOPIX Nikkei 225 Australian All Ordinaries Hang Seng Aug-10 -2.17% -1.95% -2.75% 0.05% 0.58% -5.25% -7.48% -1.52% -2.35% YTD -2.64% -4.42% -4.72% -19.48% 2.90% -10.42% -16.33% -9.09% -6.11%

month and the Australian All Ordinaries fell 1.52%. Despite falling an estimated 1.09% in August, funds investing into the country outperformed this benchmark. Economically sensitive sectors including financials, materials and consumer discretionary fell for the month, whereas defensive sectors like utilities and REITS gained.

Japanese long/short equity The market was highly volatile in
August and changed direction sharply every few days; the TOPIX and Nikkei finished down 5.25% and 7.48%, respectively. This made Japan the worst market in August, which was driven by worse-than-expected economic data. Exporters were also hurt by the strong yen, which fluctuated wildly against the US dollar, as the BoJ showed lack of action to intervene the currency market. Therefore, it is no surprise that Japanese long/short equity funds were the worst performers in August, falling an estimated 2.12% (USD class) and 2.61% (yen class).

ASIAHEDGE MEDIAN INDICES VS MSCI PACIFIC FREE
% 150 120

90

Asia excluding Japan equity Despite encouraging domestic economic
60

and trade data, most Asian markets fell in August. The strong market momentum from July faded as data from the US worsened and the MSCI Pacific ex-Japan finished the month down 1.95%. The region was led down by Hong Kong and Taiwan suffered a sharp fall as technology was the weakest sector. On the upside, smaller ASEAN markets once again managed to gain, including Thailand, the Philippines and Malaysia. Funds in this space fell an estimated 0.42% in August and down 1.90% for the year to date.

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Chinese long/short equity Fears rose over the US double-dip scenario,
which affected the market. The China A share market finished flat in August, but is still down 19.48% for the year to date. Within China, growth and imports appeared to slow and as further tightening policies in the property market continued, Hong Kong fell for the month (down 2.35%). Despite the negative news, Chinese equity was the best-performing strategy in August, gaining an estimated 1.49% median return.

MSCI Pacific Free Net AsiaHedge Composite Index AsiaHedge Japanese Equity Index USD AsiaHedge Asia including Japan Index USD AsiaHedge Asia excluding Japan Index USD

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September 2010 5

Covering the global fund of funds industry

Mandates pick up as pension funds restructure
INVESTHEDGE INDICES
Strategy Arbitrage USD Index Asian Pacific Fund of Funds Index Asset Based Lending Index Commodities Index Distressed Index Emerging Managers Index Emerging Markets Hedge USD Index European Equity EUR Index European Multi Strategy EUR Index Fixed Income USD Index Global Equity USD Index Global Macro Currency USD Index Global Multi Strategy EUR Index Global Multi Strategy USD Index Leveraged Global Multi-Strategy USD Index US Equity Index InvestHedge Composite Index Medians Aug-10 YTD 0.26% 0.10% 1.50% 0.06% 0.07% -0.46% -0.53% -1.03% -0.26% 0.51% -0.42% 1.11% 0.13% 0.18% -0.27% -0.29% 0.06% 1.44% -2.35% 2.94% -4.61% 2.39% -1.22% -0.08% -2.26% -0.27% -3.25% -1.34% 0.16% -0.73% -0.12% 0.20% -0.58% -0.33% Means Aug-10 YTD 0.21% 0.01% 1.90% 0.36% -0.21% -0.73% -0.88% -0.76% -0.94% 0.48% -0.43% 1.36% 0.09% 0.11% 0.08% -0.28% 0.05% 0.71% -2.66% 4.04% -4.38% 1.86% -1.68% -1.07% -2.43% -1.47% 3.96% -1.26% 1.00% -0.97% -0.12% 0.50% 0.21% -0.55%

HEDGE FUND STRATEGIES
Best-performing strategy
The InvestHedge Global macro currency index was one of the top-performing strategies in August, up 1.11%, reporting estimated gains of 0.16% year to date and outperforming the MCSI World Index, which was down -3.73%. Global macro managers capitalised on rising bond prices and movements in the grain markets. With funds continuing to report, this is subject to change in the coming weeks.

Worst-performing strategy
The InvestHedge Global Equity index was one of the worst performing strategies last month, with the median down 0.42% and the mean down a further 0.43% reporting a year-to-date loss of -1.34% and 1.26%, respectively. Equity markets suffered a fall in August as markets reacted to the release of soft US economic data, with housing sector, retail sales and business sentiment figures all pointing to slowing growth, markets fell considerably resulting in the S&P 500 reporting losses of 4.74% for the month.

New funds

INVESTHEDGE MEDIAN INDICES VS MSCI WORLD
% 120 100 80 60 40 20 0

Credit Suisse has launched a UCITS III-compliant multi-strategy fund of funds with some $130 million in day one investments, making it one of the largest UCITS III fund of funds launches so far. The Credit Suisse Solutions (Lux) Prima Multi Strategy fund will invest in some 20 underlying managers, of which at least half will be run by the same managers in their flagship global multi-strategy fund SAPIC 98. The Luxembourg-domiciled fund will invest in various alternative investment strategies in the liquid UCITScompliant universe including: equities, event-driven, convertibles, macro, credit, managed futures, fixed income, emerging markets and interest rates. The fund is open to both institutional and retail investors and offers weekly liquidity.

Mandates
-20 -40

August was the month when funds of funds began to show a bit of a comeback. The size of the individual mandates totalled $575 million, although not as large a figure as it would have been prior
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to 2008, but multi-manager portfolios are once again finding their niche as pension funds revamp their hedge fund programs. In particular, emerging-manager funds of funds gained interest, riding on the wave of New York State’s allocation over the summer to Rock Creek. Roughly $3 billion in searches were announced over the summer; while a number of US public pension plans begin to search for hedge fund consultants for the first time and wind down asset-liability studies.

MSCI The World Index – Net InvestHedge Leveraged Global Multi-Strategy USD InvestHedge Global Multi-Strategy USD InvestHedge Global Equity USD InvestHedge European Multi-Strategy EUR InvestHedge European Equity EUR InvestHedge Composite

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September 2010 6

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Latest UCITS III developments
AUGUST UCITS PERFORMANCE INDICES
Strategy Absolute UCITS European Equity Index EuroHedge European Equity EUR Index Absolute UCITS Composite Index HedgeFund Intelligence Global Index – Composite Medians Aug-10 YTD -0.38% 0.00% 0.13% 0.29% -0.25% 0.00% 0.52% 1.76% Means Aug-10 YTD -0.38% 0.16% -0.10% 0.27% 0.74% -0.99% -0.54% 1.63%

Single-manager UCITS III news
• Threadneedle has announced plans to launch a new UCITS IIIcompliant UK long/short equity fund. The Threadneedle UK Absolute Alpha fund will apply the same strategy as the UK Crescendo fund and will be managed by Mark Westwood and Chris Kindler. • GAM has launched its first market-neutral credit fund, in collaboration with San Francisco-based credit manager DCI. GAM Star Diversified Market Neutral Credit is a UCITS III fund that will use DCI’s quantitative

EQUITY BENCHMARKS
Benchmark index MSCI Europe – Net FTSE 100 (London) DAX (Frankfurt) Aug-10 -2.16% -0.62% -3.62% YTD -3.36% -3.47% -0.54%

approach to invest in a diversified long/short portfolio, predominantly focused on investment grade credit. • Liechtenstein-based managed futures firm Qbasis Invest is launching a UCITS fund to complement its suite of products. The unnamed fund is a single-manager, multi-strategy fund that uses managed futures and is expected to launch at the end of this year or at the beginning of 2011. • A European UCITS version of US-based York Asset Management’s Lion Fund, which uses merger arbitrage strategies, has been launched on Germany’s Universal-Investment alternative investments platform. The York Lion Merger Arbitrage Liquidity Fund UI is one of the first global merger arbitrage strategies in a UCITS-fund format in Europe.

UCITS INDICES VS EUROHEDGE EUROPEAN EQUITY AND MSCI EUROPE
% 30

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• New York-based alternative investment manager P Schoenfeld Asset Management is running the first UCITS fund on Morgan Stanley’s platform FundLogic. The fund, MS PSAM Global Event UCITS, is domiciled in Ireland, has weekly dealing and uses a global eventdriven investment strategy.

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Multi-manager UCITS III news
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• EIM, the Pfäffikon-based fund of funds group, has launched a Luxembourg-domiciled UCITS Sicav umbrella to complement its bespoke service. The number of underlying managers in its funds varies between six and 20, depending on asset class. • Signet Capital Management, a $1.4 billion fund of funds, has launched

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its first UCITS-compliant fund in response to growing demand from its institutional and private bank clients. The Signet Multi-Strategy Fund offers weekly liquidity, and will allocate globally to approximately 15 hedge funds that follow limits set in the UCITS III regulations.

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• Axa Investment Managers is planning to launch its first fund of
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UCITS hedge funds in the first quarter of next year. The fund will mostly invest in equity, fixed income and currencies, and less so in distressed assets because they are less liquid.

EuroHedge UCITS European Equity Index (Median) EuroHedge European Equity EUR Index (Median) HedgeFund Intelligence Global Index – UCITS HedgeFund Intelligence Global Index - Composite MSCI Europe - Net

• The London-based fund of funds, Key Asset Management, is to launch a UCITS III hedge fund-compliant product. Subject to regulatory approval, the fund will launch in October and will seek to allocate to a broad range of underlying strategies.

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September 2010 8

Research

H1 2010 Asia-Pacific launches show strength
Despite being one of the toughest assetraising climates in its history, the new fund launch space for Asia Pacific hedge funds in 2010 appears to show surprising strength, and interestingly enough, Hong Kong emerges as the location of choice for a majority of these funds during the first
Number of funds 80 Number of funds AUM $m 6,000

Total number of Asia-Pacific funds versus AUM: 1H 2005 – 1H 2010

70

5,000

half of the year. The AsiaHedge New Funds Survey (based on fund launches recorded and confirmed by AsiaHedge), shows that new funds managed to garner as much as $2.13 billion in the first half of the year. If you compare that to the $2.5 billion raised by new funds over the whole of 2009, one can see the evidence of a clear and continued interest in Asian hedge fund strategies. But a closer look at the statistics shows that, without doubt, all of the successful launches have come from seasoned managers with strong reputational and operational muscle, either at a personal or firm level. The survey also shows that in the first half of 2010, there were a little over 50 new funds brought to the market. This is not bad, considering that the barriers to entry are probably the highest ever, and in fact the number of launches is up a good 36% as compared to 39 launches in the same period of 2009. Total assets raised by these new launches also showed a sharp increase, with the figure in 1H 2010 growing 90% over the $1.12 billion raised in 1H 2009 and 43.6% over the $1.48 billion raised in 2H 2009. Before we pop open the champagne, though, we need to understand that this does not necessarily translate into net new allocations into Asia. We are still hearing of redemptions from hedge funds across Asia and only a slim trickle of new inflows

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Source: AsiaHedge

coming into the region, which means that the assets raised by new fund launches are probably to a large extent a result of reallocation of assets by investors within the region. Also, some of this is also the residual effect of the asset raising and marketing momentum started by several of these new managers in late 2008 to 2009, as well as the fact that many investors were≈procrastinating in 2009 before finally deciding to put their money to work. Also, we need to differentiate here between pure start-up launches and veteran hedge fund managers making a comeback by relaunching their strategies in slightly more liquid and operationally slimmer avatars. The latter make up a large chunk of players among the top 10 launches of 1H 2010. Examples include former Abax co-founder Chris Hsu’s Kilometre Capital, which at $170 million is the second-largest launch of the season, ex-Gandhara founder Davide Erro’s Turiya Capital (launched with $150 million) and former

TCI head John Ho’s Janchor Partners (launch size $100 million). The remaining names in the top 10 category are also from well-established, large managers, such as ADM Capital and Income Partners, reinforcing our view that assets are largely going to large-scale hedge fund operations with long track records. We also include Lei Zheng’s Hillhouse for the first time in our New Funds Survey which, with its $250 million launch of its Gaoling natural resources fund, takes the top slot among new funds in 1H 2010. Launch sizes have also gone up so far this year. The average size in 1H 2010 was $40 million, up slightly from $39 million in 2H 2009 and $17.04 million in 2H 2008, when the Asian hedge fund industry was at its nadir.

For the full AsiaHedge article, visit: www.hedgefundintelligence.com/Article/2634824/ AsiaHedge-Industry-Analysis/Old-hands-showtheir-strength-in-Asia.html

2H

1H

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IH

September 2010 9

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Simple
A user-friendly interface allows effortless sorting by multiple criteria including fund name, management company, performance, strategy, asset size and date of inception. Compatible with Pertrac and fully downloadable into Microsoft Excel, Access and other various third-party platforms.
*Comparative information taken from public sources.

To find out how we can tailor this powerful research tool to fit your requirements or for a demonstration, please email sales@hedgefundintelligence.com or contact: James Barfield +44 20 7779 7336 / jbarfield@hedgefundintelligence.com Ian Sanderson +44 20 7779 7339 / isanderson@hedgefundintelligence.com

UCITS

Absolute

Data

Absolute UCITS proves a draw for database
NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING AUGUST
With the launch later this month of the online dedicated UCITS alternative database – Absolute funds added with 76 UCITS funds added to the database during August. The majority of funds were based out of Europe and nearly 30% of funds were fund of UCITS funds. Meanwhile, we saw 36 traditional hedge funds added to the database during last month, 21 within EuroHedge, 10 in Absolute Return and 5 from AsiaHedge.
Number of funds added to HFI database EuroHedge AsiaHedge InvestHedge Absolute Return Absolute UCITS

UCITS, the HFI UCITS database saw a surge in new

120 100 80 60 40 20 0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

NUMBER OF FUNDS LIQUIDATED DURING AUGUST*
The HedgeFund Intelligence research and data InvestHedge liquidating 23, EuroHedge closing 20 and Absolute Return and AsiaHedge closing five and three respectively. The majority of funds liquidated were based in the UK with more than 20% of all funds being run out of London. No particular strategy dominated, though there were a handful of European equity funds and emergingmarket equity funds closing during August.
Number of funds liquidated

EuroHedge AsiaHedge

InvestHedge Absolute Return Absolute UCITS

team liquidated 51 funds during August, with

80 70 60 50 40 30 20 10 0

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

* de-duped to exclude multiple share classes

DISTRIBUTION OF PERFORMANCE
While equity markets sold off during August, hedge funds also had a challenging month, with only 56% of funds posting positive performance for August. The HedgeFund Intelligence Composite index still managed to outperform its equity benchmarks, up 0.23% for the month compared to the MSCI the World Index, which was down 3.36% for the month. As funds remained cautious, their short positions helped offset negative performance from their long books.
%

Positive

Negative

100 80 60 40 20 0

GlobalBriefing: Data
If you have a fund which you wish to be included please contact the following: Europe Samantha Munday data@eurohedge.com Americas Amal Robleh data@hedgefundintelligence.com Asia-Pacific Wing-Yung Lok data@asiahedge.com Fund of Hedge Funds Meera Mehta data@investhedge.com UCITS Amy Kirbyshire data@absoluteucits.com For more information on the database and subscriptions please contact Ian Sanderson on + 44 (0) 207 779 7339 or James Barfield on + 44 (0) 207 779 7336

GlobalBriefing is a free monthly publication

To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx

Ju l-0 9 Au g09 Se p09 Oc t-0 9 No v09 De c09 Ja n10 Fe b10 M ar -10 Ap r-1 0 M ay -10 Ju n10 Ju l-1 0 Au g10

September 2010 11

Latest

WEEKLY

news

Sandell’s assets fall as Castlerigg logs uninspiring returns
Tom Sandell’s Sandell Asset Management has lost over 57% of its firmwide assets over the past year. The firm is now managing about $1.09 billion as of July 1 down from the $2.53 billion it managed last summer.

Ex-BlueCrest, GLG man Walsh joins Lombard Odier as EM debt head
Richard Walsh, a veteran of BlueCrest Capital Management, GLG Partners and Citi’s EMSO hedge fund operation, has joined Lombard Odier Investment Managers as head of emerging market debt.

Autumn musical chairs for the Asian hedge fund space
A spate of new hires in the hedge fund industry indicates that firms are gearing up for competitive growth amid global economic recovery and strengthened investor confidence in Asia.

Maryland issues RFI for emerging managers
The Maryland State Retirement and Pension System is considering the creation of an emerging manager fund of hedge funds programme and has issued an RFI to retain one or more managers.

Impala’s flagship hits a rough patch in August
Robert Bishop’s Impala Asset Management took a hit in August in its flagship long/short equity strategy. The Impala Fund was down an estimated 4.30% in the onshore, while the offshore was down around 4.20%. The AR Equity Index was down an estimated 1.78% in August, as of early September.

GAM teams with US firm DCI for UCITS launch
GAM has launched its first market-neutral credit fund, in collaboration with San Francisco-based credit manager DCI, with a strategy that the firm describes as “a unique offering in the growing UCITS III universe”.

Certitude hires ex-RIM man to head distribution
Sydney-based Certitude Global Investments, formerly HFA Asset Management, has appointed Hector Ortiz as head of distribution. He will focus will on distributing Certitude’s flagship products, which include the Certitude Asian Opportunities Fund.

Former UVIMCO exec to lead new alternative business
Bruce MacDonald, former director of asset allocation and risk analysis at the University of Virginia Investment Management Company (UVIMCO), is one of three founding partners of Simple Alternatives, a firm that plans on offering a multi-manager, hedge equity alternative mutual fund in October.

D.E. Shaw to give back money in multi-strategy fund
D.E. Shaw is making good on redemption requests from investors in its multistrategy D.E. Shaw Composite fund after almost two years of limited withdrawals, and the firm expects assets to drop significantly as a result.

Insparo hires Stock as firm’s chief strategist
Insparo Asset Management, the London-based frontier markets investment firm focused on Africa and the Middle East, has hired emerging markets veteran Graham Stock as chief strategist. Stock joins the core management team led by CIO Mohammed Hanif.

Lux body names Asia head to promote UCITS in region
In a major sign that UCITS are headed to Asia, the Association of the Luxembourg Fund Industry has appointed Ching Yng Choi as head of its new Asia office. Based in Hong Kong, she will help raise awareness of Luxembourg as a fund domicile and promote UCITS in Asia.

Barclays Wealth beefs up hedge fund expertise
Barclays Wealth, an investor in hedge funds for its clients, has expanded its alternative investment origination and distribution teams with a number of senior hires.

GlobalBriefing
Email info@hedgefundintelligence.com Telephone +44 (0) 20 7779 7330 Fax +44 (0) 20 7779 7331 Published by HedgeFund Intelligence, Nestor House, Playhouse Yard, London EC4V 5EX To receive your free subscription to Global Briefing, please sign up at: www.hedgefundintelligence.com/globalbriefing.aspx

Compiled by head of research & data Damian Alexander dalexander@hedgefundintelligence.com Research and data team Americas: Amal Robleh Europe: Samantha Munday Asia-Pacific: Wing Yung Lok Funds of Funds: Meera Mehta UCITS: Jack Young Managing editor Neil Wilson nwilson@hedgefundintelligence.com Production Michael Hunt/Loveday Cuming

Group publisher John Willis Managing director John Orchard Subscription sales US Matt Colbeck mcolbeck@hedgefundintelligence.com +1 212 224 3568 Europe Jamie Austin jaustin@hedgefundintelligence.com +44 (0) 20 7779 8041 Asia Robert Ball rball@hedgefundintelligence.com +852 2842 6996

Customer Services +44 (0) 20 7779 8610 customerservices@euromoneyplc.com Database and directory sales US/Europe Ian Sanderson isanderson@hedgefundintelligence.com +44 (0) 20 7779 7339 US/Europe James Barfield jbarfield@hedgefundintelligence.com +44 (0) 20 7779 7336 Asia Robert Ball rball@hedgefundintelligence.com +852 2842 6996 1473-3153

Disclaimer: This publication is for information purposes only. It is not investment advice and any mention of a fund is in no way an offer to sell or a solicitation to buy the fund. Any information in this publication should not be the basis for an investment decision. EuroHedge does not guarantee and takes no responsibility for the accuracy of the information or the statistics contained in this document. Subscribers should not circulate this publication to members of the public, as sales of the products mentioned may not be eligible or suitable for general sale in some countries. Copyright in this document is owned by HedgeFund Intelligence Limited and any unauthorised copying, distribution, selling or lending of this document is prohibited.

GlobalBriefing is a free monthly publication

To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx

September 2010 12

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