December 2010 Asset Flows Update

Eurekahedge Hedge funds remain on track to finish the year on a high note as the Eurekahedge Hedge Fund Index gained 0.40%1 in November, making it the fifth consecutive month of positive returns. The month was marked by volatile market conditions as investor sentiment changed suddenly from the bullish leanings continuing from October to reignited fears of the European debt con tagion. The MSCI World 2 Index was down 2.35% in November. Total assets under management registered a slight decline of US$2.55 billion, bringing the total size of the industry to US$1.64 trillion. Asset flows for the month were marginal to slightly nega tive, with net outflows of US$0.19 billion while performance-based declines accounted for losses of US$2.36 billion. It should be noted here that the Eurekahedge Hedge Fund Index is a non-asset-weighted mean-return index and as such, the change in assets due to performance can at times go contrary to index movements depending on the performance of larger hedge funds. Figure 1 shows the monthly asset flows across the hedge fund industry since December 2008.
Figure 1: Summary Monthly Asset Flow Data sinceDecember 2008

Below are the highlights for the month of November:

All regions posted flat to positive returns for November, with the Eurekahedge Hedge Fund Index up 0.40% for the month and 7.72% YTD. Assets in Asian hedge funds crossed US$125 billion for the first time since December 2008. Distressed debt hedge funds remain the best performers in 2010, up 18.89% YTD ed November.

y y

1 2 3

Based on 58.59% of the funds reporting their NAV for November 2010 asof 14 December 2010. MSCI The World Index Free - USD For an update on November 2010 asset flows, please check our Twitter account@eurekahedge on Tuesday 21st December.
December 2010 1



Relative value hedge funds delivered six months of back-to-back positive returns, up 7.08% since June. North American hedge funds witnessed 10 consecutive months of net positive asset flows, attracting US$56.22 billion over this period. Hedge funds are ahead of underlying markets by 5.57% YTD November.



The full article is available in the EH Report accessible to paying subscribers only. Subscribers may continue to login as usual to download the full report and non -subscribers may email to enquire on how to obtain the full research report.

2 | December 2010

Copyright © Eurekahedge Pte Ltd 2010. All rights reserved.

Sign up to vote on this title
UsefulNot useful