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GlobalBriefing

HedgeFund
Intelligence

Volume 3 Issue 12 October 2010 A HedgeFund Intelligence publication

HEDGE FUND INDUSTRY GLOBAL NEWS ROUND-UP • RESEARCH • ABSOLUTE UCITS • DATA

September ushers in a reversal of fortunes


GLOBAL SUMMARY
GLOBAL INDICES (EST)
Medians Means September saw a reversal of August’s bearish sentiment, when
Strategy Sep-10 YTD Sep-10 YTD a constant flow of poor macroeconomic data had dominated the
Equity 3.28% 2.31% 3.87% 3.59%
news, escalating investors’ fears of a double-dip recession and
Macro 1.64% 4.56% 2.72% 4.65%
Managed Futures 2.20% 3.83% 3.41% 5.95%
causing an over-zealous sell-off.
Event Driven 2.41% 5.25% 3.92% 6.32% Despite September’s generally subdued economic data, it
Emerging Market Debt 1.79% 8.16% 1.96% 10.32% was far from indicating a return to recession like the previous
Emerging Market Equity 4.89% 3.61% 5.65% 5.53% month, as US data stabilised, calming recent fears. Markets were
HFI Global Composite 2.20% 4.11% 3.11% 4.93%
supported further by comments from the Federal Reserve and the
Bank of England, which signalled a willingness to provide further
stimulus, if needed, with a second round of quantitative easing.
GLOBAL COMPOSITE MEDIAN INDICES The economic outlook also improved for emerging markets,

% 350 particularly China, which saw an increase in imports and a rise in


its industrial production that surpassed expectations, indicating
300
that it was over the recent slowdown and reaccelerating.
250
Hedge fund managers had one of their best months in recent
200 years with the HedgeFund Intelligence Global Index – Composite
150 up 2.20% and HedgeFund Intelligence Global Index – Equity
100 up 3.28%. Unlike August, when markets fell, September saw
managers underperform the surge in local bourses, with the S&P
50
500 gaining almost 9%, and the FTSE (up 6.19%), DAX (up 5.13%),
0
Nikkei (up 6.18%), Hang Seng (up 8.87%) and MSCI The World
-50 Index – Net (up over 9%) all gaining.
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emerging economies saw inflows strengthening their currencies,


Japan move defensively to suppress the yen and an increase in
MSCI World Index - Net rhetoric from the US over the value of the Chinese renminbi.

HedgeFund Intelligence Global Index - Macro

HedgeFund Intelligence Global Index - Managed Futures CONTENTS


1 Global summary
HedgeFund Intelligence Global Index - Event Driven
3 The Americas summary Equities boast best September since 1939
HedgeFund Intelligence Global Index - Equity
4 Europe summary Hope returns as double-dip concerns fade
HedgeFund Intelligence Global Index - Emerging Market Equity 5 Asia-Pacific summary Asian markets rebound with positive returns
HedgeFund Intelligence Global Index - Emerging Market Debt 6 Funds of funds summary Commodities and equities perform the best
8 Absolute UCITS Latest UCITS III developments
HedgeFund Intelligence Global Index - Composite
9 Research Global hedge fund assets edge up to $1.87 trillion
11 Data Absolute UCITS continues to attract funds
For more information please contact: Damian Alexander
email: dalexander@hedgefundintelligence.com tel: +44 (0)20 7779 7361 12 Latest weekly news

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


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Covering the single manager hedge
fund industry in the Americas

Equities boast best September since 1939


ABSOLUTE RETURN INDICES (EST) MARKET EVENTS
Medians Means
Strategy Sep-10 YTD Sep-10 YTD • Bank of Canada raises interest rates for third time this year
Mixed Arbitrage Index 0.89% 4.38% 0.67% 4.78%
Commodities Index 2.82% 1.00% 3.94% 3.52%
• Unemployment rate remains at 9.6%
Convertible & Equity Arbitrage Index
Credit Index
1.09%
1.70%
6.56%
8.61%
1.68%
2.13%
7.85%
10.96%
• Government passes Obama’s Small-Business Bill
Distressed Index 1.60% 8.06% 1.44% 8.29% • Dollar falls as Fed admits possibility of further quantitative easing
Event Driven Index 3.56% 8.07% 4.55% 7.37%
Fixed Income Index 0.93% 7.68% 1.22% 8.09% • Senate delays vote on extending Bush tax cuts until after mid-terms
Global Equity Index 2.34% 2.17% 3.25% 2.90%
Latin American Debt Index 1.66% 5.84% 1.61% 5.82%
Latin American Equity Index 2.93% 7.00% 3.47% 8.67%
HEDGE FUND STRATEGIES
Macro Index 2.77% 5.92% 3.79% 6.31%
Equities Despite September’s mixed macro-economic data, investors
Managed Futures Index 2.21% 4.06% 3.48% 6.36%
Mortgage Backed Securities Index 2.20% 9.14% 2.10% 11.14% grew more confident as fears of a double-dip recession receded and
Multi-Strategy Index 1.36% 4.51% 2.56% 4.54% there was raised expectation of a further round of quantitative easing by
Technology Index 3.44% 4.55% -3.88% -0.01% the Federal Reserve. Gains were made in corporate bonds and dividend
U.S. Equity Index 4.07% 2.40% 4.57% 5.18% paying equities, while funds with conservatively positioned portfolios
Absolute Return Composite Index 2.50% 5.27% 3.44% 6.14%
were unable to take advantage of the rally in equities, as stock prices
soared and the S&P 500 Index returned its best September in 71 years,
ABSOLUTE RETURN MEDIAN INDICES VS ending up 8.76%. US and Global Equity funds returned an estimated
MSCI WORLD INDEX AND S&P 500 4.07% and 2.34% respectively, while Tech funds returned an estimated
3.44%. Managers expect the November elections to influence the markets,
% 300
and are conservatively hedging portfolios to prepare for higher volatility.

250
Convertible and Equity Arbitrage Convertible funds were up 1.09%
200 bringing the year to date to 6.56%. Funds that performed well found the
surge in the equity markets led to outrights being better buyers, while
150 investors anticipated new issuance. Year-to-date performance is down
compared to the same time last year, when funds were up 41%, according
100 to the Absolute Return Convertible & Equity Arbitrage Index; managers
thus remain cautious on convertibles, but are adding opportunistically.
50

Credit Funds within the Credit space returned an estimated 1.70%


0
for the month, gains being made through long positions in bonds and
CDS. Short positions in Brazilian indices and Chinese banks contributed
-50
to losses. Managers are targeting bonds with refinancing potential and
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see an opportunity in high-quality loans and refinance candidates.

S&P 500
Commodities/CTAs Commodity-based funds and CTAs returned
MSCI World 2.82% and 2.21% for the month respectively. Following the Japanese

Absolute Return Composite Index Government’s intervention in the yen, many portfolios saw a reduction
in their long yen exposure to the US dollar to combat the increase in
Absolute Return Global Equity
currency volatility. In the commodities market, gains were made from
Absolute Return U.S. Equity long positions in gold and silver as the continued weakness of the US
dollar led investors to seek a safe haven in the precious metals market.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 3


Covering the single manager
hedge fund industry in Europe

Hope returns as double-dip concerns fade


EUROHEDGE INDICES (EST) MARKET EVENTS
Medians Means • National Bank of Greece plans to raise €2.8bn in new capital
Strategy Sep-10 YTD Sep-10 YTD
European Equity USD 2.26% 1.19% 2.55% 1.77%
• Ireland’s cost of borrowing hits new highs in September
European Equity GBP 3.19% 2.37% 3.91% 3.52% • Anglo Irish Bank sees bailout of €34bn
European Equity EUR 2.48% 2.48% 2.26% 2.97%
Macro USD 0.59% 3.81% 1.29% 4.07%
• Spain’s credit rating cut from AAA to Aa1 by Moody
Fixed Income USD 0.45% 5.71% 0.86% 6.88% • Unions strike across Europe
Global Equity USD 2.85% 0.27% 3.78% 0.88%
Managed Futures USD 2.13% 5.87% 3.18% 6.10%
Credit USD 0.96% 7.47% 1.38% 7.49%
HEDGE FUND STRATEGIES
Currency 1.74% 3.78% 2.54% 6.41% Equities Equities had a strong month during July, with lessening fears
Event Driven USD 1.08% 2.05% 3.43% 4.48% of a double-dip recession and improved economic data being released.
Mixed Arbitrage & Multi Strategy USD 1.42% 3.84% 2.36% 6.77%
The EuroHedge Global Equity index saw an estimated gain of 2.85% for
Equity Market Neutral &
Quantitative Strategies USD 0.32% 2.73% 0.47% 2.01% September – one of its best months for a year, while emerging-market
Convertible & Equity Arbitrage USD 1.69% 7.35% 1.49% 8.12% equity was also up, gaining 4.89% for the month, with a 5.35% return for
Emerging Market Debt USD 1.69% 7.49% 2.10% 7.18% the year after oil and metal prices rose. Despite concerns over Ireland’s
Emerging Market Equity USD 4.89% 5.35% 5.13% 4.55%
banking issue, European equities still had a strong month, with the MSCI
EuroHedge Composite 1.83% 3.03% 2.47% 3.60%
Europe, DAX and FTSE up 5.31%, 5.13% and 6.19% respectively. The
French CAC also had a strong month, though was still down for the year
at -5.62% even after a boost of 6.43% for September. European hedge
EUROHEDGE MEDIAN INDICES VS
funds benefited from their long positions in equities, yet underperformed
MSCI EUROPE their benchmarks with a gain of 2.48% for the month and up the same
for the year so far, as short books affected their gains. Gains from long
% 200
positions in cyclical and growth stocks added to performance, while on a
sector basis, funds benefited from gains in energy, resources and utilities.
150
Managed Futures The EuroHedge Managed Futures Index continued
its positive performance from August with another gain of 2.13% for
100
September, pushing the return for the year’s first three quarters to 5.87%.
The month’s main contributor to performance was commodities, which
50
saw prices rise as the Fed hinted of more quantitative-easing techniques,
pushing the USD lower. Losses from long positions in fixed income such
0 as Euribor and European government bonds were offset with gains from
long positions in cotton and crops – which saw weather conditions push
prices higher. As the EuroZone forecasted better-than-expected results
-50
for 2011, the euro rose, causing a small loss for short positions. Further
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gains came from energy as prices increased during the month.


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MSCI Europe - Net


Credit The EuroHedge Credit Index is fast becoming the best strategy
EuroHedge Composite Index
for the year, up 7.47% through to the end of September after another
EuroHedge European Long/Short Equity EUR Index estimated gain of 0.96% for the month. As interest rates remain low,
EuroHedge Managed Futures USD Index issuance in Europe and the US has continued to pick up through 2010,
EuroHedge Fixed Income USD Index as seen by BP’s raising of $3.5bn bonds during September, as interest on
EuroHedge Macro USD Index debt remains cheap. While Europe saw a surge in ABS deals, confidence
EuroHedge Global Equity USD Index was boosted not only by the rally in equities but central banks’
admitting that quantitative easing may be used to revive the economy.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 4


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

Asian markets rebound with positive returns


ASIAHEDGE INDICES (EST) MARKET EVENTS
Medians Means
Strategy Sep-10 YTD Sep-10 YTD • BoJ intervenes in the currency market for first time since 2004
Asia including Japan USD 4.46% 2.92% 6.23% 4.20% • China’s PMI improves for second month, indicating reaccelerating growth
Asia excluding Japan USD 7.38% 5.55% 7.33% 7.11%
• Malaysia announces an Economic Transformation Programme of
Chinese Equity 4.87% 0.11% 5.66% 1.17% $444 billion over 10 years
Indian Equity
Japanese Equity USD
7.25%
0.99%
12.35%
0.52%
7.27%
0.93%
14.74%
-0.80%
• Hong Kong dollar and RMB appreciates substantially
Japanese Equity JPY 1.96% 1.16% 2.41% -0.32% • Weak US dollar pushes up commodities
Australian Equity AUD 4.21% 0.31% 6.61% 4.57%
AsiaHedge Composite 3.02% 3.51% 4.05% 4.16%
HEDGE FUND STRATEGIES
Single Country August was a tough month and most AsiaHedge indices
EQUITY BENCHMARKS were down for the month and also for the year to date. However, the
Benchmark index Sep-10 YTD
markets rebounded and all indices gained in September, bringing all
MSCI Pacific Free Net 7.62% 4.78%
MSCI Pacific ex Japan 12.96% 7.96%
year-to-date figures back into a positive stance. Indian and Chinese equity
MSCI China 9.05% 3.90% were the only gainers in August and both remained strong in September,
China Shanghai Composite Index -1.07% -20.34% up an estimated 7.25% and 4.87%, respectively. The MSCI China was up
Sensex 11.67% 14.91% 9.05% in September, as money continued to flow into Hong Kong and
TOPIX 3.91% -6.92%
China. Technology firms in Taiwan gained from global market strengths.
Nikkei 225 6.18% -11.16%
Australian All Ordinaries 4.46% -5.03%
Hang Seng 8.87% 2.22% Asia excluding Japan Equity Asian equity was strong in September,
in line with equities across the globe – the recovery was led by better
macro economic data, which suggested that the US would not have
ASIAHEDGE MEDIAN INDICES VS a double-dip into recession this year. ASEAN markets such as the
MSCI PACIFIC FREE Philippines and Indonesia led the region and the MSCI Pacific ex-Japan
% 150
was up a staggering 12.96% for the month. Funds investing into Asia
excluding Japan equities did not come close to the MSCI benchmark;
120
however, they were still the best-performing strategy (up 7.38%).

90
Australian Long/Short Equity Sentiment towards equity markets
60 improved, as better US housing and manufacturing data and stabilising
signs in China contributed to a positive outlook. Domestically, the
30 federal election was finalised and economic data remained strong. The
Australian All Ordinaries was up 4.46% in September and Australian
0 equity funds were closely in line with the market (up 4.21%).
Outperforming sectors included materials and industrials, but
-30 defensive sectors including REITS and healthcare underperformed.

-60
Japanese Long/Short Equity September followed a similar trend to
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Naoto Kan won the Democratic Party of Japan presidential election,


MSCI Pacific Free Net
which briefly sent the yen to a 15-year high. However, the Japanese
AsiaHedge Composite Index
AsiaHedge Japanese Equity Index USD
monetary authorities finally intervened in the international currency
AsiaHedge Asia including Japan Index USD markets and exporters were the major gainers. The Japanese market
AsiaHedge Asia excluding Japan Index USD ended the month up 3.91% (TOPIX) and 6.18% (Nikkei), with Japanese
equity funds (USD-denominated) gaining 0.99%.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 5


Covering the global
fund of funds industry

Commodities and equities perform the best


INVESTHEDGE INDICES HEDGE FUND STRATEGIES
Medians Means
Commodities
Strategy Sep-10 YTD Sep-10 YTD The InvestHedge Commodities index is, at present, one of the top-
Arbitrage USD Index 1.38% 2.75% 1.38% 2.06% performing strategies, up 3.48% last month, despite reporting an
Asian Pacific Fund of Funds Index 2.47% -0.03% 2.90% 0.07% estimated year-to-date loss of 1.02% and underperforming the MCSI
Asset Based Lending Index 0.28% 2.22% 0.28% 1.67%
World Index quite considerably (up 9.32%). With funds continuing to
Commodities Index 3.48% -1.02% 3.98% -0.45%
report, this is subject to change in the coming weeks. Several weather
Distressed Index 1.55% 3.97% 1.76% 3.81%
events and supply shortages pushed a number of markets sharply higher,
Emerging Managers Index 2.01% 1.25% 2.02% 0.79%
such as cotton, due to the flooding in Pakistan; wheat, due to the drought
Emerging Markets Hedge USD Index 3.68% 4.67% 3.19% 3.14%
in Russia; sugar, due to the dry weather in Brazil; and corn, due to the
European Equity EUR Index 1.81% -0.22% 2.32% -0.06%
European Multi Strategy EUR Index 2.00% 1.28% 2.29% 0.95% dry weather in China. The price of gold was also significantly higher.
Fixed Income USD Index 2.01% 6.31% 2.08% 6.06%
Global Equity USD Index 3.11% 1.75% 2.62% 1.28% Equities
Global Macro Currency USD Index 2.45% 2.69% 2.34% 3.15% The InvestHedge Global Equity index is among the best-performing
Global Multi Strategy EUR Index 1.15% 0.48% 1.68% 0.74% strategies at the moment, with the mean up 3.11% and the median up
Global Multi Strategy USD Index 2.13% 2.02% 2.10% 2.02% a further 2.62%, reporting a year-to-date gain of 1.75% and 1.28%
Leveraged Global Multi-Strategy USD Index 3.09% 4.20% 3.00% 4.87% respectively. Equity markets rallied as economic data improved, leading
US Equity Index 2.78% 1.85% 2.66% 2.50%
to a greater investor risk appetite. The US equity markets rose due to
InvestHedge Composite Index 2.23% 1.94% 2.33% 1.84%
optimistic manufacturing, jobs and housing figures while the European
equity markets were mixed, as Spain’s credit rating was downgraded
INVESTHEDGE MEDIAN INDICES VS MSCI WORLD followed by Ireland’s banking system failing, but consumer confidence
% 120 grew as retail sales in the UK hit a high and German inflation slowed.

100 New funds


Signet Capital Management has launched its first UCITS-compliant
80
multi-strategy fund of funds following growing demand from their
institutional and private bank clients. The Signet Multi-Strategy fund
60
offers weekly liquidity and will allocate globally to approximately 15
hedge funds that follow the limits set in the UCITS III regulations. The
40
fund domiciled in Dublin is intended for investors in the UK, Europe
20 and Asia. The fund aims to produce consistent, low-volatility returns
largely uncorrelated with traditional markets, and will be flexible in
0 terms of strategy, always keeping the UCITS guidelines in mind.

-20 Mandates
Funds of funds and single-manager hedge-fund mandates seem to be
-40
on par with one another this month as the size of individual FoHF
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according to the InvestHedge monthly mandate tables. A number of


MSCI The World Index – Net
InvestHedge Leveraged Global Multi-Strategy USD searches for single-manager hedge funds are still underway in a variety
InvestHedge Global Multi-Strategy USD of strategies at US state pensions. CalPERS put another $105 million to
InvestHedge Global Equity USD work in single HF fund allocations as New Jersey prepares to put in
InvestHedge European Multi-Strategy EUR
more than $7 billion in hedge funds to meet a larger asset allocation.
InvestHedge European Equity EUR
InvestHedge Composite Pensions in Norway and Korea added to both single manager and FOHF
mandates, while the state of Vermont made its foray via FoHFs.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 6


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UCITS

Latest UCITS III developments


Single-manager UCITS III news
SEPTEMBER UCITS PERFORMANCE INDICES • Merchant Capital has lined up the third fund launch for its UCITS III
Medians Means
Strategy Sep-10 YTD Sep-10 YTD hedge fund platform. The Merchant Global Resources UCITS Fund is due
Absolute UCITS European Equity Index 0.68% 0.31% 1.43% 2.14% to launch later this month and will be run by experienced resources
EuroHedge European Equity EUR Index 2.48% 2.48% 2.26% 2.97% investment manager Tal Lomnitzer.
Absolute UCITS Single Manager Composite Index 1.02% 1.50% 2.26% 1.70%
HedgeFund Intelligence Global Index – Composite 2.20% 4.11% 3.11% 4.93% • HSBC Global Asset Management has rolled out a leveraged version of
its flagship macro absolute return portfolio, the HSBC GIF Global Macro
EQUITY BENCHMARKS Fund. The fund is co-managed by Guillaume Rabault and Jim Dunsford,
Benchmark index Sep-10 YTD and will invest across liquid markets in cash, equities, bonds and
MSCI Europe – Net 5.31% 1.77% currencies worldwide.
FTSE 100 (London) 6.19% 2.51%
DAX (Frankfurt) 5.13% 4.56% • Martin Currie, the Edinburgh-based ‘big boutique’ manager overseeing
$1.2 billion, is launching a UCITS III-compliant product based on the
firm’s ARF-Japan Fund, a long/short equity strategy launched in 2000.
UCITS INDICES VS EUROHEDGE EUROPEAN Luxembourg-domiciled Japan Absolute Alpha will be managed by
EQUITY AND MSCI EUROPE John-Paul Temperley and Keith Donaldson.

% • GLG Partners plan to reopen one of its UCITS-compliant offerings to


30 new investment after receiving strong demand from investors. The firm
is creating an additional $250 million of capacity and will close the fund

20 again once this has been filled.

• Swiss alternatives manager Salus Alpha is planning an Asia-focused


multi-strategy UCITS III fund to meet investor demand for a highly
10
liquid product centred on the fast-growing region. Salus Alpha is
partnering with an Asian fund manager to launch an existing multi-
0
strategy product on its UCITS III platform.

• Quant Asset Management is planning to launch a UCITS III fund that


-10 will follow the investment strategy of its offshore global equities fund.
The UCITS version of the British Virgin Islands-based Quant Global
-20 Equities Fund is expected to launch in January 2011.

Multi-manager UCITS III news


-30
• Alternative asset manager Man has launched a UCITS III long/short
equity fund of funds domiciled in Luxembourg. The portfolio has
-40 between eight and 12 managers including Marshall Wace, RWC Partners
and TT International.

-50
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• Assets under management for UCITS that use hedge fund strategies
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have almost reached the $50 billion milestone. There are a total of 296
EuroHedge UCITS European Equity Index (Median)
EuroHedge European Equity EUR Index (Median) funds that have $49.2 billion AUM, according the latest research by the
HedgeFund Intelligence Global Index – UCITS HedgeFund Intelligence data team. They consist of 254 single-manager
HedgeFund Intelligence Global Index - Composite
hedge funds with combined assets of $46.1 billion, plus 42 funds of
MSCI Europe - Net
funds with $3.1 billion assets.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 8


Research
Global hedge fund assets edge up to $1.87tr
After a rebound of some 10% buoyed by
strong performance during the second half The $1.87 trillion industry: where the assets are managed
of 2009, assets in the global hedge fund
industry edged up at a much slower pace 1,500 Asia-Pacific funds managed in the US $30bn
$1,342bn European funds managed by US firms $21bn
during the first half of 2010. According to
Other hedge funds managed in the US $1,291bn
our latest research, global assets were up a 1,200 European funds managed in Europe $349bn
modest 2% during the first half of this year Asia-Pacific funds managed in Europe $12bn
to reach a total of $1.866 trillion by the Asia-Pacific funds managed in Asia-Pacific $96bn
Assets $bn

900 Rest of world – Latin America $40bn


beginning of July.
Rest of world – Canada $20bn
The latest numbers on global assets came Rest of world – Africa $7bn
following a period of relatively flat 600 Total $1,866bn
performance during the first half across the $382bn
hedge fund industry – which implies that 300
any new inflows of assets must have been $138bn
$67bn
more or less evenly matched by the pace of
0
investor redemptions. US Europe Asia Rest of the world
Industry assets remain a long way below Source: HedgeFund Intelligence Note: The figures shown here are for single-manager hedge funds only. They do not include or double-count money allocated to hedge funds
their historic high of over $2.65 trillion set via funds of funds. Assets in funds of hedge funds are tracked separately by InvestHedge.

during 2007 before the global financial


crisis took hold. Absolute Return Billion Dollar Club alone more, representing a combined total of
As in previous years, the lion’s share of accounting for combined assets of over $1.2 $1.535 trillion – a slightly higher propor-
global assets are managed in the United trillion. Globally, there are now 302 firms tion than at the beginning of the year, and
States, with the 217 members of the that run hedge fund assets of $1 billion or continuing a trend whereby assets have
become ever more heavily concentrated
The global billion dollar club: July 2010 among the bigger firms. The top 10 firms
AUM $bn Number of % of total % of total alone now control 15% of the global total.
Location firms assets funds New York remains the biggest single
NY, USA 706.44 124 46.03% 39.49%
London, UK 238.82 52 15.56% 16.56% centre of the industry, followed by London
CT, USA 168.1 25 10.95% 7.96% which is still in second place. Assets in
CA, USA 70.03 16 4.56% 5.10%
MA, USA 89.48 12 5.83% 3.82% standard European hedge funds did not rise
Hong Kong 13.47 10 0.88% 3.18% at all in the first half, though there was an
TX, USA 25.59 8 1.67% 2.55% increase in onshore UCITS III-compliant
NJ, USA 25.32 5 1.65% 1.59%
Sydney, Australia 19.67 5 1.28% 1.59% hedge funds to reach nearly $35 billion in
MN, USA 16.53 5 1.08% 1.59% Europe (and nearly $50 billion in all)
Singapore 6.15 5 0.40% 1.59%
IL, USA 22.05 4 1.44% 1.27% – which are not included in the totals here.
Paris, France 15.39 4 1.00% 1.27% The rising centres include places in Asia
Hamilton, Bermuda 11.22 4 0.73% 1.27%
such as Hong Kong, where the number of
Stockholm, Sweden 14.34 3 0.93% 0.96%
WI, USA 9.85 3 0.64% 0.96% firms in the Billion Dollar Club jumped
Rio de Janiero, Brazil 5.13 3 0.33% 0.96% from 6 to 10 in the first half of the year;
Toronto, Canada 4.14 3 0.27% 0.96%
Tokyo, Japan 3.92 3 0.26% 0.96% and in Latin America, where there are now
GA, USA 11.84 2 0.77% 0.64% five firms with $1 billion or more in either
PA, USA 11.79 2 0.77% 0.64%
Sao Paulo or Rio de Janeiro.
São Paulo, Brazil 10.31 2 0.67% 0.64%
Other 35.28 14 2.30% 4.46%
Total 1,534.86 302* 100% 100% Taken from a HedgeFund Intelligence
Source: HedgeFund Intelligence *De-duplicated to account for groups with more than one official location
press release, London

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HFI Global Database Ad Full HFI_UCITS.indd 19 01/07/2010 14:44


Data
Absolute UCITS continues to attract funds
NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING SEPTEMBER
The Hedgefund Intelligence data and research team EuroHedge InvestHedge
added 173 UCITS funds to the database during AsiaHedge Absolute Return Absolute UCITS
September, as we saw the launch of Absolute UCITS 250

Number of funds added to


– our online news offering dedicated to UCITS funds.
200
In total, the team added 208 funds to the database
during the month, with EuroHedge adding an 150
HFI database
additional 15, Absolute Return + Alpha adding 10 100
and AsiaHedge and InvestHedge adding 8 and 2
50
respectively. The majority of funds added were
either based in the US, London or Singapore. 0
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10

NUMBER OF FUNDS LIQUIDATED DURING SEPTEMBER*


In total, 55 funds were liquidated in the database EuroHedge InvestHedge
AsiaHedge Absolute Return Absolute UCITS
during September. Absolute Return saw the greatest
80
Number of funds liquidated

number of funds close, with 19, followed closely by 70


EuroHedge at 18. InvestHedge and AsiaHedge saw 60
10 and 8 respectively. Our Absolute UCITS database 50
also saw a liquidation last month, with one fund 40
noted as closed. On the single-manager side, over 30
half of the funds noted as liquidated in the 20
10
database during September closed within 2010. No
0
specific strategy dominated but a number of equity Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10
* de-duped to exclude multiple share classes
strategies saw liquidations throughout September.

DISTRIBUTION OF PERFORMANCE
%
Hedge funds had one of their strongest months during Positive Negative
100
September posting an estimated gain of 2.20% for the
month, the strongest gain since May 2009. While 83% 80

of single-manager hedge funds, which have reported to 60

our database so far are posting positive performance 40


during September – with a handful of funds posting 20
strong double-digit gains, they still managed to
0
underperform their equity benchmarks – with the
9

09

09

10

-10

-10

-10

10

10

10
t-0

r-1

l-1

g-
n-

n-

p-

MSCI the World Index up 6.95% as small losses from


v-

c-

ar

ay
b

Ju
Ap

Au
Ja

Ju
Fe

Se
Oc

De
No

short positions detracted from gains in their long books.

GlobalBriefing: Data
If you have a fund which you wish to be included please contact the following:
Europe Americas Asia-Pacific Fund of Hedge Funds UCITS
Samantha Munday Amal Robleh Wing-Yung Lok Meera Mehta Amy Kirbyshire
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Latest WEEKLY news

AR Symposium workshops to Lombard Odier taps Bataillon Hong Kong’s DragonBack Plan sponsors monitor
feature Utah pension exec to run l/s European equity morphs into fund platform funding status, Mercer says
The full schedule for workshop Lombard Odier Investment Hong Kong-based DragonBack Current markets present
sessions at the forthcoming AR Managers, the institutional Capital is transitioning to a challenges to trustees, but
Symposium, to be held at the New asset management arm of the platform provider for hedge it seems most are focused
York Athletic Club on November 200-year-old Swiss private bank fund managers in Asia and on funding issues and
2-3, has now been finalized — Lombard Odier Darier Hentsch overseas following the recent ‘de-risking’ of their portfolio,
adding a range of important & Cie, has made a significant closure of its two strategies according to a recent survey
topics and speakers from many addition to its hedge fund and the departure of its released by Mercer.
more major firms to the program. operation with the hire of investment team, led by
experienced long/short equity co-founder Matthew Barnett. ABN Amro teams up with
Everest Capital partners with manager Marc Bataillon and his Lyxor for hedge funds
RiceHadley Group team from Selectium Europe. LaCrosse buys BoAML’s global ABN Amro Private Banking
Everest Capital, a $2 billion global fund admin business and Lyxor Asset Management
macro hedge fund in Miami, has GLG starts UCITS version of LaCrosse Global Fund Services have entered into a partner-
formed a strategic partnership Atlas Macro fund has finalised its acquisition of ship for hedge fund solutions,
with the RiceHadley Group, the GLG Partners is launching a Bank of America Merrill enabling ABN Amro’s private
consulting firm founded by UCITS-compliant version of its Lynch’s $6 billion global fund bank to offer its clients access
former U.S. Secretary of State high-performing GLG Atlas administration business – the to a wide selection of Lyxor’s
Condoleezza Rice and former U.S. Macro Fund, managed by latest spin-off deal of its kind managed account-based
National Security Advisor portfolio manager Driss Ben- from a multibillion-dollar hedge fund products.
Stephen Hadley, according to a Brahim and chief investment financial institution.
letter the firm sent to investors. strategist, Jamil Baz. Albourne grows team
Marble Bar rethinks Asia exponentially
September rally pushes all Polar recruits AXA strategy post closure of fund Albourne Partners, whose
strategies into the black Framlington global EM team London-based Marble Bar clients have now placed more
With almost a quarter of Polar Capital has announced Asset Management, the than $200 billion among 1,500
September’s performance in so far, the formation of a global EM long/short-focused firm, hedge funds, has dramatically
it appears that hedge funds in the franchise with the hiring of is said to be examining grown its team and anticipates
U.S. are posting positive returns, an experienced three-strong the way forward for its another 10 hires before year end
with the AR Composite Index up team from AXA Framlington Singapore office after the in line with its commitment to
an estimated 3.33%, compared to comprising William Calvert, closure in June of its MBAM track client growth with the
August’s gain of 0.42%. Ming Kemp and Neil Denman. Pan-Asian Fund. firm’s colleague growth.

Compiled by head of research & data Group publisher John Willis Customer Services

GlobalBriefing Damian Alexander


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Published by HedgeFund Intelligence, Nestor House, US/Europe James Barfield
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Disclaimer: This publication is for information purposes only. It is not investment advice and any mention of a fund is in no way an offer to sell or a solicitation to buy the fund. Any information in this publication should not be the basis for an investment decision. EuroHedge does not guar-
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