Index Flash

Hedge funds up 0.52% in February

March 2010 After being marginally down in January, hedge funds returned to positive territory in February 2010. The composite Eurekahedge Hedge Fund Index gained 0.52% during the month as the underlying global markets posted a recovery from a disappointing January. The MSCI World Index was up 1.23% in February, bringing its YTD figure to -3.01%.

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Hedge fund start-up activity gears up with nearly 90 launches globally in 1Q2010. Arbitrage hedge funds delivered 15 consecutive months of positive returns, gaining 26.23% since November 2008.

Main Indices Index Eurekahedge Hedge Fund Index Eurekahedge Fund of Funds Index Eurekahedge Long-Only Absolute Return Fund Index Eurekahedge Islamic Fund Index Regional Indices Hedge fund returns across most regions were marginally positive for February; however, early reports showed that North American managers, who make up 65% of the hedge fund universe, posted impressive gains of 1.41%. Regional managers capitalised on the marked improvements in market sentiment on the back of some strong earnings reports, positive movements in the US dollar and commodities as well as improved manufacturing data and the Fed’s decision to maintain low interest rates. Latin American funds were also positive with a 0.48% returns in February while Asia ex-Japan and Japan funds returned nominally positive performances. Continued problems in the eurozone led to negative results by the region’s managers, who were down 0.66% in February as the euro weakened amid speculation of Greece’s sovereign debt default. Index Eurekahedge North American Hedge 1 Feb 2010 Est1 1.41 2010 YTD Returns 0.95 2009 Returns 23.38 Feb 2010 Est1 0.52 0.20 0.55 0.83 2010 YTD Returns -0.26 -0.20 -0.48 -0.36 2009 Returns 19.52 9.76 47.00 21.68

Index Flash

Hedge funds up 0.52% in February
Fund Index Eurekahedge European Hedge Fund Index Eurekahedge Eastern Europe & Russia Hedge Fund Index Eurekahedge Japan Hedge Fund Index Eurekahedge Emerging Markets Hedge Fund Index Eurekahedge Asia ex-Japan Hedge Fund Index Eurekahedge Latin American Hedge Fund Index Strategy Indices Similar to regional mandate returns, most strategic indices changed slightly in February, albeit on the positive side. The best performers were CTA managers, who navigated skillfully through choppy crude oil prices while gains in the commodity sector and the US dollar also proved profitable for most funds. The Eurekahedge CTA/Managed Futures Hedge Fund Index was up a strong 1.27% during the month. Continued low interest rates in the US also helped managers in the bonds sector to deliver yet another month of positive results. Fixed income, arbitrage and relative value hedge funds were all up during the month while distressed debt managers were flat to slightly negative. Index Eurekahedge Arbitrage Hedge Fund Index Eurekahedge CTA/Managed Futures Hedge Fund Index Eurekahedge Distressed Debt Hedge Fund Index Eurekahedge Event Driven Hedge Fund Index Eurekahedge Fixed Income Hedge Fund Index Eurekahedge Long/Short Equities Hedge Fund Index Eurekahedge Macro Hedge Fund Index Eurekahedge Multi-Strategy Hedge Fund Index Eurekahedge Relative Value Hedge Fund Index Feb 2010 Est1 0.55 1.27 -0.02 0.29 0.46 0.12 0.17 0.61 1.15 2010 YTD Returns 1.32 -1.30 2.68 0.44 1.12 -0.79 -0.42 0.34 1.16 2009 Returns 23.62 2.38 35.96 38.63 23.60 23.28 12.63 21.03 22.39

-0.66 -4.47 0.07 -0.49 0.18 0.48

0.28 -1.96 1.05 -1.35 -2.46 0.35

21.97 60.75 6.72 34.48 37.49 26.92

Eurekahedge indices are available for download from www.eurekahedge.com/indices/hedgefundindices.asp and are updated with the latest fund returns at 23:30 GMT every day. Index values and data can be downloaded for free and subscribers can download the full list of index constituents. Please contact indices@eurekahedge.com for more information. For the full suite of Eurekahedge indices, www.eurekahedge.com/indices/hedgefundindices.asp. please visit

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Index Flash

Hedge funds up 0.52% in February
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Based on 39.49% of the NAV for February 2010 as at 9 March 2010.

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