hfi global briefing - january 2011

8
MONTHLY PERFORMANCE DATA, NEWS AND ANALYSIS FOR THE GLOBAL HEDGE FUND INDUSTRY Global Briefing Volume 4 Issue 3 January 2011 A HedgeFund Intelligence publication HedgeFund Intelligence Hedge funds gain 8% worldwide in 2010 GLOBAL SUMMARY Hedge fund performance lagged the equity markets last year despite most strategies earning substantial profits in December. The Hedge- Fund Intelligence Global Composite Index, which tracks nearly 4,000 single-manager hedge funds, produced a median gain of 8.08% in 2010 against an 11.76% rise in the MSCI World Index (net). Americas, Europe, Asia Funds in the Americas rose 9.44% in 2010, against a 12.78% gain for the S&P 500 Index. European funds gained 6.68% against a 3.88% gain for the MSCI Europe Index (net). Asian funds gained 7.64% against a rise of 15.92% for the MSCI Pacific Free Index (net). Event-driven hedge funds were the best performers globally, gaining 10.38% in 2010. Macro funds fell into last place globally, rising only 5.16% for the year. Hedge funds continue to outperform equity indices over a longer time span. The global composite was up 102.59% over the past decade, while the MSCI World Index (net) was up 25.62% and the S&P 500 Index fell 4.74% over the same period. The performance figures cited in this document are early estimates that were accurate as of 8am EST on 7 January 2010. For the latest performance figures, please visit the individual indices (available in the following pages) on the HedgeFund Intelligence site. CONTENTS 1 Global summary 2 HFI news, data and research 3 The Americas summary 4 Europe summary 5 Asia-Pacific summary 6 Funds of hedge funds/investor summary 7 Absolute UCITS 8 Growth of hedge fund industry assets Medians Means Strategy Dec-10 YTD Dec-10 YTD Equity 3.05% 7.57% 3.44% 10.28% Macro 0.42% 5.16% 2.03% 7.36% Managed Futures 3.65% 8.12% 4.91% 12.65% Event Driven 2.74% 10.38% 2.63% 12.95% Emerging Market Debt 1.79% 10.34% 2.53% 13.38% Emerging Market Equity 2.04% 8.43% 2.25% 10.63% HFI Global Composite 2.30 % 8.08% 3.13% 10.48% GLOBAL INDICES (EST) % 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 -50 0 50 100 150 200 250 300 350 Dec-10 Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04 Dec-03 Dec-02 Dec-01 Dec-00 Dec-99 Dec-98 Dec-97 GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing GLOBAL COMPOSITE MEDIAN INDICES For the latest statistics please view the HedgeFund Intelligence indices Figures correct as of 7 January 2011

Upload: absolute-return

Post on 04-Apr-2015

585 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: HFI Global Briefing - January 2011

monthly performance data, news and analysis for the global hedge fund industry

GlobalBriefingVolume 4 Issue 3 January 2011 A HedgeFund Intelligence publication

AsiaHedge

EuroHedge

HedgeFund Intelligence

Hedge funds gain 8% worldwide in 2010GloBal summaryHedge fund performance lagged the equity markets last year despite

most strategies earning substantial profits in December. The Hedge-

Fund Intelligence Global Composite Index, which tracks nearly 4,000

single-manager hedge funds, produced a median gain of 8.08% in

2010 against an 11.76% rise in the MSCI World Index (net).

Americas, Europe, Asia

Funds in the Americas rose 9.44% in 2010, against a 12.78% gain for

the S&P 500 Index. European funds gained 6.68% against a 3.88% gain

for the MSCI Europe Index (net). Asian funds gained 7.64% against a

rise of 15.92% for the MSCI Pacific Free Index (net).

Event-driven hedge funds were the best performers globally, gaining

10.38% in 2010. Macro funds fell into last place globally, rising only

5.16% for the year.

Hedge funds continue to outperform equity indices over a longer time

span. The global composite was up 102.59% over the past decade,

while the MSCI World Index (net) was up 25.62% and the S&P 500

Index fell 4.74% over the same period.

The performance figures cited in this document are early estimates

that were accurate as of 8am EST on 7 January 2010. For the latest

performance figures, please visit the individual indices (available in

the following pages) on the HedgeFund Intelligence site.

CoNTENTs1 Global summary

2 HFI news, data and research

3 The americas summary

4 Europe summary

5 asia-Pacific summary

6 Funds of hedge funds/investor summary

7 absolute uCITs

8 Growth of hedge fund industry assets

medians meansstrategy Dec-10 yTD Dec-10 yTD

equity 3.05% 7.57% 3.44% 10.28%

macro 0.42% 5.16% 2.03% 7.36%

managed futures 3.65% 8.12% 4.91% 12.65%

event driven 2.74% 10.38% 2.63% 12.95%

emerging market debt 1.79% 10.34% 2.53% 13.38%

emerging market equity 2.04% 8.43% 2.25% 10.63%

HFI Global Composite 2.30 % 8.08% 3.13% 10.48%

GloBal INDICEs (EsT)

%

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 DebtHedgeFund Intelligence Global Index - Composite

-50

0

50

100

150

200

250

300

350

MSCI The 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 - CompositeDec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

Dec-01

Dec-00

Dec-99

Dec-98

Dec-97

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing

GloBal ComPosITE mEDIaN INDICEs

for the latest statistics please view the hedgefund intelligence indices

Figures correct as of 7 January 2011

Page 2: HFI Global Briefing - January 2011

HFI: News, Data & Research

GlobalBriefingEmail [email protected] +44 (0) 20 7779 7330Fax +44 (0) 20 7779 7331Published by HedgeFund Intelligence, Nestor House, Playhouse Yard, London EC4V 5EX

HedgeFund Intelligence Publications

AsiaHedge, EuroHedge, InvestHedge and AR provide comprehensive coverage

on hedge funds and their investors. Combining news, data and

analysis, these publications provide a unique insight into this

dynamic industry.

HedgeFund Intelligence Databases

We list information on more than 13,000 hedge funds and funds of

funds worldwide. Search by performance, category, manager, size,

inception and more.

HedgeFund Intelligence Jobs

Looking for your next career move? You can search instantly or register

with us and receive the latest hedge fund jobs to your inbox every day.

HedgeFund Intelligence Indices

Free to view, our indices are the hedge fund industry’s most accurate

benchmark of performance across the globe.

HedgeFund Intelligence Reports

In-depth reports on different regions and sectors from our award-winning

journalists. Latest report – UCITS 2010: Going to the next stage.

Absolute ReturnAsiaHedgeEuroHedgeInvestHedgeAbsolute UCITSAll datasets...

Data Alerts newSearch ResultsWatch list 1Watch list 2Watch list 3More...

Overviewby Fund Nameby Performanceby Chart newby Strategyby Asset Sizeby Inception Dateby Main Officeby Domicileas League Table newAdvanced Search new

by Nameby AUMby Location

Active fundsLiquidated fundsRecent additions only

to CSVto Excelto Accessmore...

Example Fund Ltd111 Main StreetNewtownCounty/StateCountry

Fund manager Person’s nameCEO/COO Person’s nameMarketing Person’s namePhone +X XXX XXX XXXXFax +X XXX XXX XXXXWeb site www.examplefund.comMap [open in new window]

Fund performance vs Index

Fund [more]Absolute Return U.S. Equity Index

Hurdle rate Yes/NoHigh water mark Yes/NoFund open? Yes/NoMin investment $X

Management fee X%Performance fee X%Subscription MonthlyRedemption Quarterly with X days

noticeLock up X Months

Annualised return X%Annualised std dev X%Sharpe (RFR of 2%) X*since inception

Last month X%Last 3 months X%Last 6 months X%Last 12 months X%Last 18 months X%Last 24 months X%Last 36 months (X%)

Prime broker Company name.Administrator Company nameAuditor Company nameLegal advisor Company name

Strategy US EquityAUM Less than $10mCurrency USDDomicile DelawareInception date January 2002This is a sector-specific long/short fund

Drawdown Length Recovery Peak Valley(X%) 13 0 Oct 07 Nov 08(X%) 8 8 Sep 04 May 05(X%) 3 3 Mar 04 Jun 04(X%) 1 2 Jul 07 Aug 07(X%) 5 6 Apr 06 Sep 06

Nuclear-powered Thunder tops the ARdatabase in October

12 November 2010

AR November performance roundup

15 December 2009

Strategy focus - Commodities shine asgold prices soar

5 December 2007

Poof! $35 billion gone from hedgefunds

1 March 2007

Gold: Funds soar on rally

1 March 2006

Our Data Alerts service can email youwhen this fund is updated.

Create new alert

Click any watch list below to add, or remove,this fund.

Search Results Watch list 1 Watch list 2 Watch list 3 add to new watch list...

SEARCH ARTICLES

Example Fund LtdFrom Absolute Return

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD2010200920082007200620052004

The investment world is gettingpolarised

Anthony Muh, HRL Morrison & Co

Welcome | My clippings | My searches | My account

LOG OUT News Data Search [Advanced]

YOUR DATASETS

YOUR WATCH LISTS

BROWSE LIST

BROWSE FIRMS

INCLUDE?

DOWNLOAD

SERVICE PROVIDERS

STRATEGY

INVESTMENT TERMS

HISTORIC PERFORMANCE* RECENT COMPOUND RETURNS

DRAWDOWNS

ALERTS

WATCH LISTS

RELATED ARTICLES

MONTHLY RETURNS

X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%X% X% X% X% X% X% X% X% X% X% X% X% X%

HOME NEWS INDUSTRY ANALYSIS PROFILES PERFORMANCE EVENTS INVESTORS SPECIAL REPORTS DATABASE

www.hedgefundintelligence.comAbsoluteUCITS

AbsoluteUCITS

AbsoluteUCITS

AbsoluteUCITS

AbsoluteUCITS

Need to know about hedge funds?

Head of research & dataDamian [email protected] Samantha Munday [email protected] [email protected]

Asia-PacificWing-Yung Lok [email protected] of Hedge FundsMeera Mehta [email protected] Young [email protected]

Managing editor Neil [email protected]

Online editor (AR) Josh Friedlander

Group publisher John WillisManaging director John OrchardProduction Mark Hills-Haney/Loveday CumingCustomer Services +44 (0) 20 7779 [email protected]

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

For more information on HedgeFund Intelligence products and services, please contact:

Page 3: HFI Global Briefing - January 2011

Covering the single-manager hedge fund industry in the Americas

AbsoluteUCITS

Medians MeansStrategy Dec-10 YTD Dec-10 YTD

Mixed Arbitrage Index 0.44% 5.62% 2.10% 9.92%

Commodities Index 3.70% 9.12% 3.02% 15.13%

Convertible & Equity Arbitrage Index 0.57% 10.16% 2.05% 12.45%

Credit Index 1.09% 11.68% 1.25% 14.73%

Distressed Index 1.21% 12.08% 1.50% 12.64%

Event Driven Index 3.14% 13.86% 3.15% 14.99%

Fixed Income Index 0.65% 9.47% 0.75% 10.46%

Global Equity Index 3.01% 8.48% 2.78% 9.96%

Latin American Debt Index 0.26% 5.77% 0.33% 5.71%

Latin American Equity Index 1.31% 9.75% 2.26% 13.08%

Macro Index 0.76% 6.36% 2.07% 9.13%

Managed Futures Index 3.16% 7.58% 4.33% 11.88%

Mortgage Backed Securities Index 1.91% 11.90% 1.91% 16.02%

Multi-Strategy Index 2.64% 9.60% 3.34% 10.89%

Technology Index 2.55% 9.15% 2.47% 11.33%

U.S. Equity Index 2.82% 8.75% 3.40% 13.38%

Absolute Return Composite Index 2.31% 9.44% 3.22% 12.22%

AbSoluTe ReTuRn InDICeS (eST)

%

S&P 500

MSCI World

Absolute Return Composite Index

Absolute Return Global Equity

Absolute Return U.S. Equity

-50

0

50

100

150

200

250

300

350

Absolute Return Composite Index

Absolute Return U.S. Equity Index

Absolute Return Global Equity

MSCI The World

S&P 500

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

Dec-01

Dec-00

Dec-99

Dec-98

Globalbriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 3

AbSoluTe ReTuRn MeDIAn InDICeS vS MSCI woRlD InDex AnD S&P 500

Click the links to view. Subscription required unless noted otherwise.

lATeST newS & AnAlYSIS• Brevan Howard hires D.E. Shaw, Eton Park marketing pro• Tiedemann/Falconer Partners suffers second down year• NYC pension funds hire Aksia to help with initial hedge fund

investments• Caspian to spin out from Mariner• Top 10 hedge fund stories of 2010• The greatest hits of 2010• AR Database Top 40: 2010 • Ex-Ramius analyst starts new funds • Resurgent Autonomy Capital clocks big gains in tepid year

for macro• Loeb to Obama supporters: He’s just not that into you!

FEATURES & PROFILES• Aging hedge funds grapple with succession planning• Jamie Dinan’s dream• New Mexico boosts its bet• A passion for music: Roy Niederhoffer backs the Harmony

Program

COMMENTARY (FREE)• Brazil: Beyond iron ore, oil and pulp• Hedge fund IRR has been pathetic

RESEARCH & RANkINgS• Funds to Watch: AR's pick of tomorrow's superstars• Billion Dollar Club: Our comprehensive list of all Americas-based

hedge fund firms managing $1 billion or more in assets• Hedge Fund Report Card: York comes out on top• New Funds Survey: Assets garnered by new funds nearly tripled

to $10.9 billion in the first half of 2010• Philanthropy: Demand for aid went up during the recession—at

the same time growth of hedge fund philanthropy slowed• Prime brokerage: Charting the historic shake up in prime broker

market share

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

For more information on HedgeFund Intelligence products and services, please contact:

editorial contacts

Michelle Celarier, Editor, AR Magazine, [email protected]

Josh Friedlander, Online editor, AR Magazine, [email protected]

Americas funds gain 2.3% in December

For the latest statistics please view the Absolute Return indices

Figures correct as of 7 January 2011

Page 4: HFI Global Briefing - January 2011

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 4

Covering the single-manager hedge fund industry in Europe

AbsoluteUCITS

Click the links to view. Subscription required unless noted otherwise.

LATEST NEWS & ANALySiS• Hoare steps down as GLC CEO, Went and Banner promoted• BlueCrest hires new head of global EM research and strategy• RAB absorbs Park Place to bolster European long/short equity• RWC lines up macro launch for former Threadneedle managers• CTAs ride the year-end wave as returns rally across the board• Nevsky stars start again with Europe-biased global equity fund• BTG Pactual races to $1.2bn with global EM and macro vehicle• Macro specialist Lombard Street teams with Key for fund debut• CQS to soft-close Hintze's high-flying Directional Opportunities• UK long/short equity veteran Findley set to spin out from Moore

FEATURES & FUND PROFILES• Sweden's Brummer & Partners: local and global pioneer• Camargue rides wild terrain to build platform for growth• Blue Skye's niche players open new vistas for investors• Huge pay day as event activist Audley turns coal to gold• European Credit Management starts special sits strategy• ABC Arbitrage builds fund range off prop trading success• Long-standing macro player Tanglin back on the front foot

COMMENT (FREE)• Gartmore shows difficulty of creating lasting equity value• Do hedge funds really need funds of funds?

PERFORMANCE• Buoyant conditions boost long/short equity numbers• Macro winners and losers split as dispersion continues• EM debt/equity specialists keep strong returns coming

EUROHEDGE AWARDS • Top contenders emerge after another challenging year

Medians MeansStrategy Dec-10 YTD Dec-10 YTDEuropean Equity USD 2.50% 6.22% 3.85% 8.62%European Equity GBP 4.83% 8.87% 2.69% 7.92%European Equity EUR 2.22% 6.83% 3.03% 8.80%Macro USD 0.00% 4.95% 1.66% 6.33%Fixed Income USD -0.17% 6.54% -0.38% 7.69%Global Equity USD 5.13% 7.34% 4.69% 7.26%Managed Futures USD 3.73% 9.89% 6.76% 14.15%Credit USD -1.05% 7.41% -0.72% 8.92%Currency -0.46% 2.71% 0.63% 5.65%Event Driven USD 1.19% 4.91% 1.80% 11.08%Mixed Arbitrage & Multi Strategy USD 1.94% 7.54% 2.59% 9.94%Equity Market Neutral & 0.75% 4.93% 0.76% 4.25% Quantitative Strategies USDConvertible & Equity Arbitrage USD 2.28% 12.58% 1.56% 12.71%Emerging Market Debt USD 4.08% 12.01% 3.26% 10.55%Emerging Market Equity USD 3.34% 11.87% 3.70% 11.02%Composite 2.23% 6.68% 3.22% 8.74%

EUROHEDGE INDICES (EST)

%

MSCI Europe - Net

EuroHedge Global Equity USD IndexEuroHedge Macro USD IndexEuroHedge Fixed Income USD Index

EuroHedge Managed Futures USD Index

EuroHedge European Long/Short Equity EUR IndexEuroHedge Composite Index

-50

0

50

100

150

200MSCI Europe - Net

EuroHedge Composite Index

EuroHedge European Equity EUR Index

EuroHedge Managed Futures USD Index

EuroHedge Fixed Income USD Index

EuroHedge Macro USD Index

EuroHedge Global Equity USD Index

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

Dec-01

Dec-00

Dec-99

EUROHEDGE MEDIAN INDICES vS MSCI EUROPE

For the latest statistics please view the EuroHedge indices

Editorial contacts

Nick Evans, Editor, EuroHedge, [email protected]

Robert Murray, Associate editor, EuroHedge, [email protected]

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

For more information on HedgeFund Intelligence products and services, please contact:

European funds beat MSCI benchmark

Figures correct as of 7 January 2011

Page 5: HFI Global Briefing - January 2011

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 5

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

AbsoluteUCITS

Medians MeansStrategy Dec-10 YTD Dec-10 YTD

Asia including Japan USD 2.55% 6.83% 3.21% 7.87%

Asia excluding Japan USD 2.06% 10.07% 2.50% 11.97%

Chinese Equity 0.05% 4.97% 0.70% 6.81%

Indian Equity 2.04% 10.66% 1.40% 13.13%

Japanese Equity USD 3.71% 6.15% 4.64% 6.40%

Japanese Equity JPY 3.88% 7.58% 4.04% 5.31%

Australian Equity AUD 3.41% 6.34% 3.41% 11.31%

AsiaHedge Composite 2.46% 7.64% 2.79% 9.45%

ASiAHeDge inDiCeS (eST)

%

MSCI Pacific Free NetAsiaHedge Composite IndexAsiaHedge Japanese Equity Index USDAsiaHedge Asia including Japan Index USDAsiaHedge Asia excluding Japan Index USD

-60

-30

0

30

60

90

120

150MSCI Pacific Free Net

AsiaHedge Composite Index

AsiaHedge Japanese Equity Index USD

AsiaHedge Asia including Japan Index USD

AsiaHedge Asia excluding Japan Index USD

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

Dec-01

Dec-00

Dec-99

equiTY BenCHMArkSBenchmark index Dec-10 YTD

MSCI Pacific Free Net 7.60% 15.92%

MSCI Pacific ex Japan 7.56% 16.91%

China Shanghai Composite Index -0.43% -14.31%

Sensex 5.06% 17.43%

TOPIX 4.50% 0.96%

Nikkei 225 2.94% -3.01%

Australian All Ordinaries 3.65% -0.73%

Hang Seng 0.12% 5.32%

ASiAHeDge MeDiAn inDiCeS vS MSCi pACifiC free

editorial contacts

Aradhna Dayal, Editor, AsiaHedge, [email protected]

Yvonne Chan, Senior writer, AsiaHedge, [email protected]

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

for more information on Hedgefund intelligence products and services, please contact:

Click the links to view. Subscription required unless noted otherwise.

LATeST neWS & AnALYSiS• Value Partners outlines global management ambitions • GLG-Man eyes dedicated Asia/emerging markets hedge fund

strategy• Hsu’s Kilometre goes the distance with strong returns • Brummer makes Asia push with event-driven strategy • CAI makes its mark in Asian multi-strat space • Artradis’ Diggle sets up family office under Vulpes moniker • Fortress’s Levinson mulls move to Singapore • Hillhouse plans Hong Kong office • Dark pools emerge as a key force in Asia

feATureS & prOfiLeS• 2011: A curtain raiser • What next for the renminbi?• Where do the 2009 start-ups stand?

COMMenT (free)• Will Asia deliver the next generation of global hedge fund

brands?

inDuSTrY AnALYSiS• Asia-Pacific assets edge up slightly to $138 billion

Asian funds end on a high but lag indices

For the latest statistics please view the AsiaHedge indices

Figures correct as of 7 January 2011

Page 6: HFI Global Briefing - January 2011

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 6

Covering the global fund of funds industry

AbsoluteUCITS

Medians MeansStrategy Nov-10 YTD Nov-10 YTD

Arbitrage USD Index 0.23% 3.72% 0.22% 2.91%

Asian Pacific Fund of Funds Index 0.05% 1.61% 0.11% 1.60%

Asset Based Lending Index 0.18% 3.73% 0.18% 1.85%

Commodities Index -0.39% 1.41% -0.22% 2.98%

Distressed Index 0.35% 5.44% 0.34% 5.36%

Emerging Managers Index 0.73% 3.93% 0.49% 3.15%

Emerging Markets Hedge USD Index -0.40% 3.72% -0.44% 5.15%

European Equity EUR Index 0.28% 2.00% 0.36% 1.82%

European Multi Strategy EUR Index -0.38% 2.39% -0.49% 1.98%

Fixed Income USD Index -0.17% 7.02% -0.22% 7.34%

Global Equity USD Index 0.27% 3.07% 0.27% 3.47%

Global Macro Currency USD Index -1.14% 2.99% -1.02% 3.82%

Global Multi Strategy EUR Index -0.04% 1.73% -0.02% 1.96%

Global Multi Strategy USD Index 0.02% 3.11% -0.02% 3.41%

Leveraged Global Multi-Strategy USD Index -0.12% 5.44% -1.46% 6.09%

US Equity Index 0.68% 4.33% 0.43% 4.96%

Composite Index 0.00% 2.97% -0.10% 3.31%

INveSTheDge INDICeS

%

MSCI The World Index – NetInvestHedge Leveraged Global Multi-Strategy USDInvestHedge Global Multi-Strategy USDInvestHedge Global Equity USDInvestHedge European Multi-Strategy EURInvestHedge European Equity EURInvestHedge Composite

-30

-20

-10

0

10

20

30

40

50

60

70

80

Nov-10

Nov-09

Nov-08

Nov-07

Nov-06

Nov-05

Nov-04

INveSTheDge MeDIaN INDICeS vS MSCI WorlD

editorial contacts

Niki Natarajan, Editor, InvestHedge, [email protected]

Susan Barreto, Deputy editor, InvestHedge, [email protected]

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

For more information on hedgeFund Intelligence products and services, please contact:

Click the links to view. Subscription required unless noted otherwise.

laTeST NeWS & aNalYSIS• Cambridge Associates looks for opportunities in less developed

markets • PennSERS halves hedge fund allocation • Apollo teams up with Lighthouse • Mercer analyses fund of fund fees • Frick to take CEO role at Unigestion • Pension funding woes grow in Illinois • Kentucky Retirement System hires new CIO • New Jersey searches for specialist consultants • Metal Box ups direct investments • CalSTRS may opt for Lyxor’s managed accounts

FEATURES & PROFILES• Chicago Police serve and protect pensions via hedge fund

mindset• AP1 aligns its ethical standards with hedge fund investments

CoMMeNT (Free)• FoHFs and the art of truffle hunting

INdUSTRy ANALySIS• Signet teams up with Wilshire as transparency tops the

action list• doing the due diligence detective work• Public pensions tout fee/lock-up concessions• PAAMCO Founders mulls options after order to prepare 40%

equity certificate for new owner

Funds of funds grind out gains in all areas

For the latest statistics please view the InvestHedge indices

Page 7: HFI Global Briefing - January 2011

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 7

%

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

-50

-40

-30

-20

-10

0

10

20

30

MSCI Europe - Net

HedgeFund Intelligence Global Index - Composite

Absolute UCITS Single Manager Composite Index

EuroHedge European Equity EUR Index (Median)

Absolute UCITS European Equity Index

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

UCITS INDICES VS EUROHEDGE EUROPEAN EQUITY AND MSCI EUROPE

Medians MeansStrategy Dec-10 YTD Dec-10 YTD

Absolute UCITS European Equity Index 2.46% 4.45% 2.32% 6.23%

EuroHedge European Equity EUR Index 2.22% 6.83% 3.03% 8.80%

Absolute UCITS Single Manager Composite Index 1.13% 3.75% 1.92% 4.95%

HedgeFund Intelligence Global Index - Composite 2.30% 8.08% 3.13% 10.44%

DECEMBER UCITS PERFORMANCE INDICES

EQUITY BENCHMARKSBenchmark index Dec-10 YTD

MSCI Europe - Net 5.45% 6.83%

FTSE 100 (London) 6.72% 9.00%

DAX (Frankfurt) 3.37% 16.06%

AbsoluteUCITS

Editorial contacts

Joy Dunbar, Editor, AbsoluteUCITS, [email protected]

Ian Sanderson (US/Europe)[email protected]+44 (0) 20 7779 7339

James Barfield (US/Europe)[email protected] +44 (0) 20 7779 7336

Robert Ball (Asia Pacific)[email protected]+852 2842 6996 1473 3153

For more information on HedgeFund Intelligence products and services, please contact:

Click the links to view. Subscription required unless noted otherwise.

LATEST NEWS & ANALYSIS• Cazenove reopens UK equity fund • First gold UCITS fund launches• Deutsche Bank teams up with Paulson for UCITS• Bank of America Merrill Lynch launches Irish platform• Sandell AM mulls second UCITS hedge fund launch • Fusion launches UCITS cash management vehicle

FEATURES & PROFILES• China to pave the way for second wave of UCITS launches,

says Galaxy

COMMENT (FREE) • UCITS hedge funds head East • Platforms: help or hindrance? • Is the Luxembourg regulator too slow?

INDUSTRY ANALYSIS• The UCITS hedge funds industry to top more than a trillion

dollars, report says • Société Générale offers alternative to platform route• AIFMD will split the industry into two, says NewFinance Capital • Shorting of equities should be allowed in UCITS, says consultant

Tracking error leaves UCITS funds trailing

For the latest statistics please view the Absolute UCITS indices

Figures correct as of 7 January 2011

Page 8: HFI Global Briefing - January 2011

Global hedge fund assets

Source: HedgeFund Intelligence

Ass

ets

$bn

0

500

1,000

1,500

2,000

2,500

3,000Global hedge fund assets (est)

20012002

20032004

20052006

20072008

2009

1H 2010

Fund of funds assets (InvestHedge FoF Billion Dollar Club)

1H 20102009

20082007

20062005

20042003

20022001

FUND OF FUNDS ASSETS VS TOTAl GlOBAl ASSETS

Growth of the global hedge fund industry

HedgeFund Intelligence compiles global asset data from its databases and surveys. The firm-specific figures, which are verified on a firm-by-firm basis, result in the most painstaking and accurate survey of its kind.

To discuss the methodology of the Global Billion Dollar Club, please

contact any of our editors.Nick Evans, Editor, EuroHedge, [email protected] Dayal, Editor, AsiaHedge, [email protected] Natarajan, Editor, InvestHedge, [email protected] Celarier, Editor, AR Magazine, [email protected]

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing January 2011 8

ThE GlOBAl BilliON DOllAr clUB jUly 2010¹location AUM ($) Number of firms % total assets % total fundsNY, USA 706.44 124 46.03 39.49London, UK 238.82 52 15.56 16.56CT, USA 168.1 25 10.95 7.96CA, USA 70.03 16 4.56 5.10MA, USA 89.48 12 5.83 3.82Hong Kong 13.47 10 0.88 3.18TX, USA 25.59 8 1.67 2.55NJ, USA 25.32 5 1.65 1.59Sydney, Australia 19.67 5 1.28 1.59MN, USA 16.53 5 1.08 1.59Singapore 6.15 5 0.40 1.59IL, USA 22.05 4 1.44 1.27Paris, France 15.39 4 1.00 1.27Hamilton, Bermuda 11.22 4 0.73 1.27Stockholm, Sweden 14.34 3 0.93 0.96WI, USA 9.85 3 0.64 0.96Rio de Janeiro, Brazil 5.13 3 0.33 0.96Toronto, Canada 4.14 3 0.27 0.96Tokyo, Japan 3.92 3 0.26 0.96GA, USA 11.84 2 0.77 0.64PA, USA 11.79 2 0.77 0.64São Paulo, Brazil 10.31 2 0.67 0.64Other 35.28 14 2.30 4.46Total 1,534.86 302* 100 100*De-duplicated to account for groups with more than one official location ¹Single-manager funds (not including fund of funds)Source: HedgeFund Intelligence Database

US NEw hEDGE FUNDS h1 2004 – h1 2010 Number of funds (assets over $50m) Assets raised $mH1 2004 34 5,810H1 2005 42 6,371H1 2006 38 6,567H1 2007 49 13,324H1 2008 28 10,382H1 2009 17 3,731H1 2010 33 7,697

EUrOpEAN NEw hEDGE FUNDS h1 2004 – h1 2010 Number of funds Assets raised $mH1 2004 128 9,430H1 2005 150 13,095H1 2006 172 11,437H1 2007 189 15,545H1 2008 106 10,841H1 2009 47 2,089H1 2010 58 3,752

ASiAN NEw hEDGE FUNDS h1 2005 – h1 2010 Number of funds Assets raised $mH1 2005 65 3,878H1 2006 70 3,304 H1 2007 74 5,701H1 2008 50 2,549H1 2009 39 1,120H1 2010 53 2,127Source: HedgeFund Intelligence