Index Flash

Hedge fund assets cross US$1.6 trillion

November 2010 Hedge funds witnessed another month of strong gains in October amid a sustained rally in underlying global markets. The Eurekahedge Hedge Fund Index gained 2.26%1 for the month, bringing the year-to-date October returns to 7.31%. The MSCI World Index was up 3.65% in October. Key highlights for the month:

• • • •

Hedge funds were up 7.31% YTD October, ahead of global markets by 2.71% Greater China hedge funds rose 10.69% in the last two months Strong launch activity was seen in the first three quarters, with more than 600 funds launched in 2010 so far Global hedge fund assets crossed US$1.6 trillion

Main Indices Index Eurekahedge Hedge Fund Index Eurekahedge Fund of Funds Index Eurekahedge Long-Only Absolute Return Fund Index Eurekahedge Islamic Fund Index Oct 2010 Est1 2.26 1.45 2.56 1.76 2010 YTD Returns 7.31 2.98 10.70 6.51 2009 Returns 19.74 9.39 46.92 21.59

In terms of regional mandates, Asia ex-Japan funds witnessed the strongest returns, with managers investing in Greater China delivering the best performance in October. The Eurekahedge Asia ex-Japan Hedge Fund Index was up 3.11% in the month, finishing ahead of the MSCI AC Asia Pacific Ex-Japan Index, which gained 2.65%. Managers investing in China witnessed a second month of excellent returns – up 3.91%, taking their two-month gain to 10.69%. Chinese managers were helped by a strong run in the underlying equity markets – the Shanghai Composite advanced 12.17% while the Hang Seng gained 3.30%. Hedge funds in most other regions were also profitable in October as expectations of further quantitative easing and better-than-expected corporate earnings help underlying markets extend their rallies through October. The Eurekahedge North American Hedge Fund Index was up 1

Index Flash

Hedge fund assets cross US$1.6 trillion
2.42% as the S&P 500 posted a 3.69% gain, while Latin American and European hedge funds delivered returns of 1.95% and 1.31%, respectively. Regional Indices Index Eurekahedge North American Hedge 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 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 Oct 2010 Est1 1.63 3.13 1.90 1.95 0.68 2.30 1.54 2.17 1.48 2010 YTD Returns 7.21 8.08 11.56 10.03 8.91 6.08 6.32 7.24 8.67 2009 Returns 21.66 2.91 32.90 38.55 22.34 23.98 12.82 21.09 21.29 Oct 2010 Est1 2.42 1.31 2.72 -0.09 2.38 3.11 1.95 2010 YTD Returns 8.35 5.45 11.08 1.10 8.87 9.08 8.13 2009 Returns 23.50 20.18 60.08 6.61 35.72 38.24 28.62

In terms of strategic mandates, hedge funds across the board ended the month with healthy gains. CTA/managed futures funds stood out with the best performance in October, gaining 3.13% on average, as managers were able to capture most of the upside in rising commodity prices. A weaker US dollar, as well as supply concerns, saw most commodity contracts rise, gold hit a new record high of US$1,388 during the month while soft commodities and crude oil finished the month higher. The S&P Goldman Sachs Commodity Index advanced 2.56% in the month. Managers investing in equity markets were able to deliver another month of excellent returns as the Eurekahedge Long/Short Equity Hedge Fund Index was up 2.30% in October. Distressed debt managers also continued their winning ways, gaining 1.90% and increasing their year2

Index Flash

Hedge fund assets cross US$1.6 trillion
to-date October return to a strong 11.56%. 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 latest ongoing promotions offered by Eurekahedge and our marketing partners, please visit our promotions page, www.eurekahedge.com/promotions. Regards, Eurekahedge www.eurekahedge.com +65 6212 0925
1

Based on 37.06% of funds reporting the NAV for October 2010 as of 9 November 2010.

Click here to unsubscribe.

Copyright © 2005-2010 Eurekahedge Pte Ltd. All rights reserved. www.eurekahedge.com

3

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.