Press Release

Global hedge fund assets slip

8.5% to $1.67 trillion in the
first half of 2009

Continuing decline in global hedge fund industry AUM during the first half of 2009

But indications of a reversal in the trend from Q3 09

HFI estimates that global industry AUM could rebound by 10% or more in second
half

New York remains biggest centre for hedge funds, London still in second place

Assets in global hedge funds slipped a further 8.5% during the first half of 2009 to reach a total
figure of $1.67 trillion by July, according to the latest research conducted by HedgeFund
Intelligence.

This drop during the first half of the year continued a decline that had begun during 2008, when
there had been a particularly steep fall during the second half of the year. From a peak figure of
almost $2.7 trillion reached during the first half of 2008, global hedge fund assets have now
fallen by some 38%.

During the second half of last year, in the midst of the global financial crisis, the fall in industry
assets had been hastened by widespread negative performance – which, along with net
redemptions, had also accounted for a substantial proportion of the overall decline.

In the first half of this year, however, performance was generally robust, with a median return
from hedge funds globally of over 5% (and higher than that on a mean average basis). This
implies that net redemptions from hedge funds were continuing at a fairly rapid rate between
January and June – with as much as 15% of investor money being pulled from the industry
during the first half, and the further overall decline only partially offset by positive performance.

By July, however, it had already become increasingly clear that the rate of decline had been
slowing towards a stop – and since then that this massive trend of net outflows has petered out
and probably begun to reverse. Many major fund groups have been reporting higher asset
figures in the past two months due to both strong performance and/or renewed net inflows.

Neil Wilson, editorial director at HedgeFund Intelligence, added: “Following what was a period of
strong performance during the third quarter and plenty of anecdotal evidence that the majority
of funds have begun to see net inflows again, we would not be surprised to see industry assets
rise from the midyear levels by at least 10% before the end of 2009.”

Press Release: Global hedge fund assets slip 8.5% to $1.67 trillion in the first half of 2009
Date: 2 October 2009
Page 1 of 3
During the first half, there was a further trimming down in the ranks of the bigger firms in the
industry – with the number of firms that run hedge fund assets of $1 billion or more slipping
further from 395 in the first half of 2008 to 311 at the beginning of 2009 and now to 291 at the
mid-year point (de-duplicating for related groups which run funds from more than one centre).
The combined assets of these ‘billion dollar club’ firms also shrank further – from $1.46 trillion in
January to $1.37 trillion by July.

New York remains by some distance the top global centre for hedge funds. Though New York’s
total number of billion dollar firms slipped a little, from 123 to 118, during the first half, its share
of assets remained almost unchanged at nearly 47%.

London is still comfortably the second biggest centre, but its number of billion dollar firms
dropped more steeply in the first half – from 65 to 55, as several UK-based firms slipped below
the $1 billion mark. London’s share of the global billion dollar club’s total assets thus slipped
from over 17% to under 15%.

Connecticut is still in third place, with a share of assets slightly up at nearly 10.5%. The figures
for other global hedge fund centres were largely unchanged, with centres on the increase this
year including Hong Kong and Singapore.

For clarity: these statistics include single-manager hedge fund assets only. They do not double-
count money allocated to hedge funds via funds of funds. Statistics on funds of funds are
collected and published separately by InvestHedge.

THE $1.67 TRILLION INDUSTRY: WHERE THE ASSETS ARE MANAGED

Press Release: Global hedge fund assets slip 8.5% to $1.67 trillion in the first half of 2009
Date: 2 October 2009
Page 2 of 3
THE GLOBAL BILLION DOLLAR CLUB – BY LOCATION OF MANAGER

Number AUM % by
City/State Country of Firms $Bn AUM
NY USA 118 642.86 46.88%
London UK 55 203.84 14.86%
CT USA 29 143.84 10.49%
CA USA 22 80.95 5.90%
MA USA 12 84.73 6.18%
Hong Kong Hong Kong 8 11.22 0.82%
TX USA 7 23.61 1.72%
Tokyo Japan 5 5.29 0.39%
IL USA 5 26.59 1.94%
Sydney Australia 4 14.06 1.03%
Paris France 4 10.11 0.74%
Singapore Singapore 4 6.65 0.48%
NJ USA 4 15.80 1.15%
Hamilton Bermuda 3 8.13 0.59%
Stockholm Sweden 3 11.43 0.83%
MN USA 3 12.20 0.89%
WI USA 3 16.40 1.20%
Mebourne Australia 2 1.10 0.08%
GA USA 2 7.29 0.53%
Sao Paulo Brazil 1 7.30 0.53%
Toronto Canada 1 1.82 0.13%
Jersey Channel Islands 1 1.24 0.09%
Limassol Cyprus 1 1.83 0.13%
Rotterdam Netherlands 1 8.06 0.59%
Oslo Norway 1 1.96 0.14%
Geneva Switzerland 1 2.54 0.19%
Edinburgh UK 1 1.10 0.08%
FL USA 1 1.36 0.10%
MD USA 1 3.90 0.28%
PA USA 1 10.00 0.73%
VA USA 1 4.09 0.30%
Total* 305 1371.31 100.00%

*After de-duplicating for firms which operate $1 billion funds from more than one centre

** ENDS **

About HedgeFund Intelligence

HedgeFund Intelligence is the leading provider of news, analysis and performance data on the global hedge
fund industry. The company provides dedicated information on US, European, Asian and African single-
manager hedge funds as well as on hedge fund investors worldwide.

For more information, please contact:

Neil Wilson, Editorial Director, HedgeFund Intelligence

+44 (0) 20 7779 7359 / nwilson@hedgefundintelligence.com

US media:
Armel Leslie, Walek & Associates:
+1 212 889-4113 / aleslie@walek.com

Rest of world media:

Paul Farrow, Merlin PR
+44 (0) 20 7653 6620 / pfarrow@merlinpr.com

Press Release: Global hedge fund assets slip 8.5% to $1.67 trillion in the first half of 2009
Date: 2 October 2009
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