April 2011 Hedge Fund Performance Commentary


Introduction Hedge funds were up for the ninth consecutive month in March as managers navigate successfully d 1 through turbulent market conditions. The Eurekahedge Hedge Fund Index was up 0.15% in March, 2 bringing its year-to-date return to 1.26%. In contrast, the MSCI World Index was down 1.53% for the month. All regions outperformed their respective underlying market indices in a month that started off with declines in global markets due to discouraging reports about the European debt situation Chinese , economic data and continued political tensions in the Middle East. The disastrous earthquake and tsunami in Japan on 11 March and the subsequent crisis at the FukushimaDaiichi nuclear power plant then led to a sharp sell-off in markets around the world. Asia ex-Japan hedge funds delivered the best performance among the major hedge fund regionsin March, gaining 2.18%. The MSCI AC Asia Pacific Ex Japan Index advanced 3.66% as a number of underlying markets posted significant gains. The BSE Sensexrose 9.1% on the back of strong foreign investment flows, while South Korea's Kospi and Thailand's SET gained 8.63% and 6.03%, respectively. Chinese markets also posted a strong recovery near the month -end, with the Hang Seng returning 0.81% and the Shanghai Composite posting 0.79%. Among other regions, returns from North American and European hedge funds were flat while Japanese managers delivered excellent downturn protection amid sharply falling markets. Japanese hedge funds lost 1.04% on average in March, while the Topix and the Nikkei 225 were down 8.61% and 8.18% respectively. , February 2011 and March 2011 returns
2.5% 2.0% 1.5% 1.0% 0.5% 0.0% (0.5%) (1.0%) (1.5%) (2.0%) North America Europe Japan Asia ex-Japan Latin America Eurekahedge Hedge Fund Index

Source: Eurekahedge


North American and Japanese hedge funds continue to remain ahead in theYTD return measure with gains of 2.73% and 2.29%, respectively. Investors are starting to look at...

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Based on 68.37% of the funds reporting their March 2011 returns as at 16 April 2011. The MSCI World Index Free ± Local Currency
April 2011 1



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