Global Briefing October 2010

8/8/2019 Global Briefing October 2010

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

GlobalBriefingVolume 3 Issue 12 October 2010 A HedgeFund Intelligence publication

HedgeFundIntelligence

September ushers in a reversal of fortunesGLOBAL SUMMARY

September saw a reversal of Augusts bearish sentiment, when

a constant flow of poor macroeconomic data had dominated the

news, escalating investors fears of a double-dip recession and

causing an over-zealous sell-off.

Despite Septembers generally subdued economic data, it

was far from indicating a return to recession like the previous

month, as US data stabilised, calming recent fears. Markets were

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.

The economic outlook also improved for emerging markets,

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

its industrial production that surpassed expectations, indicating

that it was over the recent slowdown and reaccelerating.

Hedge fund managers had one of their best months in recent

years with the HedgeFund Intelligence Global Index Composite

up 2.20% and HedgeFund Intelligence Global Index Equity

up 3.28%. Unlike August, when markets fell, September saw

managers underperform the surge in local bourses, with the S&P

500 gaining almost 9%, and the F TSE (up 6.19%), DAX (up 5.13%),

Nikkei (up 6.18%), Hang Seng (up 8.87%) and MSCI The World

Index Net (up over 9%) all gaining.

Currencies became a hot topic again last month as growing

emerging economies saw inflows strengthening their currencies,

Japan move defensively to suppress the yen and an increase in

rhetoric from the US over the value of the Chinese renminbi.

CONTENTS1 Global summary

3 The Americas summaryEquities boast best September since 1939

4 Europe summaryHope returns as double-dip concerns fade

5 Asia-Pacific summaryAsian markets rebound with positive returns

6 Funds of funds summaryCommodities and equities perform the best

8 Absolute UCITS Latest UCITS III developments

9 Research Global hedge fund assets edge up to $1.87 trillion

11 Data Absolute UCITS continues to attract funds

12 Latest weekly newsFor more information please contact: Damian Alexanderemail: [email protected] tel: +44 (0)20 7779 7361

Medians MeansStrategy Sep-10 YTD Sep-10 YTD

Equity 3.28% 2.31% 3.87% 3.59%

Macro 1.64% 4.56% 2.72% 4.65%

Managed Futures 2.20% 3.83% 3.41% 5.95%

Event Driven 2.41% 5.25% 3.92% 6.32%

Emerging Market Debt 1.79% 8.16% 1.96% 10.32%

Emerging Market Equity 4.89% 3.61% 5.65% 5.53%

HFI Global Composite 2.20% 4.11% 3.11% 4.93%

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

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100

150

200

250

300

350

Sep-10

Sep-09

Sep-08

Sep-07

Sep-06

Sep-05

Sep-04

Sep-03

Sep-02

Sep-01

Sep-00

Sep-99

Sep-98

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

GLOBAL COMPOSITE MEDIAN INDICES


2/12

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3/12

Equities boast best September since 1939

Covering the single manager hedge

fund industry in the Americas

HEDGE FUND STRATEGIESEquities Despite Septembers mixed macro-economic data, investors

grew more confident as fears of a double-dip recession receded and

there was raised expectation of a further round of quantitative easing by

the Federal Reserve. Gains were made in corporate bonds and dividend

paying equities, while funds with conservatively positioned portfolios

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,

ending up 8.76%. US and Global Equity funds returned an estimated

4.07% and 2.34% respectively, while Tech funds returned an estimated

3.44%. Managers expect the November elections to influence the markets,

and are conservatively hedging portfolios to prepare for higher volatility.

Convertible and Equity Arbitrage Convertible funds were up 1.09%

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

investors anticipated new issuance. Year-to-date performance is down

compared to the same time last year, when funds were up 41%, according

to the Absolute Return Convertible & Equity Arbitrage Index; managers

thus remain cautious on convertibles, but are adding opportunistically.

Credit Funds within the Credit space returned an estimated 1.70%

for the month, gains being made through long positions in bonds and

CDS. Short positions in Brazilian indices and Chinese banks contributed

to losses. Managers are targeting bonds with refinancing potential and

see an opportunity in high-quality loans and refinance candidates.

Commodities/CTAs Commodity-based funds and CTAs returned

2.82% and 2.21% for the month respectively. Following the Japanese

Governments intervention in the yen, many portfolios saw a reduction

in their long yen exposure to the US dollar to combat the increase in

currency volatility. In the commodities market, gains were made from

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.


Mixed Arbitrage Index 0.89% 4.38% 0.67% 4.78%

Commodities Index 2.82% 1.00% 3.94% 3.52%

Converti ble & Equity Arbitrage Index 1.09% 6.56% 1.68% 7.85%

Credit Index 1.70% 8.61% 2.13% 10.96%

Distressed Index 1.60% 8.06% 1.44% 8.29%

Event Driven Index 3.56% 8.07% 4.55% 7.37%Fixed Income Index 0.93% 7.68% 1 .22% 8.09%

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%

Macro Index 2.77% 5.92% 3.79% 6.31%

Managed Futures Index 2.21% 4.06% 3.48% 6.36%

Mortgage Backed Securities Index 2.20% 9.14% 2.10% 11.14%

Multi-Strategy Index 1.36% 4.51% 2.56% 4.54%

Technology Index 3.44% 4.55% -3.88% -0.01%

U.S. Equity Index 4.07% 2.40% 4.57% 5.18%

Absolute Return Composite Index 2.50% 5.27% 3.44% 6.14%

ABSOLUTE RETURN INDICES (EST)

%

S&P 500

MSCI World

Absolute Return Composite Index

Absolute Return Global Equity

Absolute Return U.S. Equity

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100

150

200

250

300

Sep-10

Sep-09

Sep-08

Sep-07

Sep-06

Sep-05

Sep-04

Sep-03

Sep-02

Sep-01

Sep-00

Sep-99

Sep-98

MARKET EVENTS

Bank of Canada raises interest rates for third time this year

Unemployment rate remains at 9.6%

Government passes Obamas Small-Business Bill

Dollar falls as Fed admits possibility of further quantitative easing

Senate delays vote on extending Bush tax cuts until after mid-terms

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

ABSOLUTE RETURN MEDIAN INDICES VSMSCI WORLD INDEX AND S&P 500


4/12


Hope returns as double-dip concerns fade

Covering the single manager

hedge fund industry in Europe

HEDGE FUND STRATEGIESEquities Equities had a strong month during July, with lessening fears

of a double-dip recession and improved economic data being released.

The EuroHedge Global Equity index saw an estimated gain of 2.85% for

September one of its best months for a year, while emerging-market

equity was also up, gaining 4.89% for the month, with a 5.35% return for

the year after oil and metal prices rose. Despite concerns over Irelands

banking issue, European equities still had a strong month, with the MSCI

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

funds benefited from their long positions in equities, yet underperformed

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

positions in cyclical and growth stocks added to performance, while on a

sector basis, funds benefited from gains in energy, resources and utilities.

Managed Futures The EuroHedge Managed Futures Index continued

its positive performance from August with another gain of 2.13% for

September, pushing the return for the years first three quarters to 5.87%.

The months main contributor to performance was commodities, which

saw prices rise as the Fed hinted of more quantitative-easing techniques,

pushing the USD lower. Losses from long positions in fixed income such

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

for 2011, the euro rose, causing a small loss for short positions. Further

gains came from energy as prices increased during the month.

Credit The EuroHedge Credit Index is fast becoming the best strategy

for the year, up 7.47% through to the end of September after another

estimated gain of 0.96% for the month. As interest rates remain low,

issuance in Europe and the US has continued to pick up through 2010,

as seen by BPs raising of $3.5bn bonds during September, as interest on

debt remains cheap. While Europe saw a surge in ABS deals, confidence

was boosted not only by the rally in equities but central banks

admitting that quantitative easing may be used to revive the economy.


European Equity USD 2.26% 1.19% 2.55% 1.77%

European Equity GBP 3.19% 2.37% 3.91% 3.52%

European Equity EUR 2.48% 2.48% 2.26% 2.97%

Macro USD 0.59% 3.81% 1.29% 4.07%

Fixed Income USD 0.45% 5.71% 0.86% 6.88%

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%

Currency 1.74% 3.78% 2.54% 6.41%

Event Driven USD 1.08% 2.05% 3.43% 4.48%

Mixed Arbitrage & Multi Strategy USD 1.42% 3.84% 2.36% 6.77%

Equity Market Neutral &

Quantitative Strategies USD 0.32% 2.73% 0.47% 2.01%

Converti ble & Equity Arbitrage USD 1.69% 7.35% 1.49% 8.12%

Emergi ng Market Debt USD 1.69% 7.49% 2.10% 7.18%

Emerging Market Equity USD 4.89% 5.35% 5.13% 4.55%

EuroHedge Composite 1.83% 3.03% 2.47% 3.60%

EUROHEDGE INDICES (EST)

%

MSCI Europe - Net

EuroHedge Global Equity USD Index

EuroHedge Macro USD Index

EuroHedge Fixed Income USD Index

EuroHedge Managed Futures USD Index

EuroHedge European Long/Short Equity EUR Index

EuroHedge Composite Index

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100

150

200

Sep-10

Sep-09

Sep-08

Sep-07

Sep-06

Sep-05

Sep-04

Sep-03

Sep-02

Sep-01

Sep-00

MARKET EVENTS

National Bank of Greece plans to raise 2.8bn in new capital Irelands cost of borrowing hits new highs in September Anglo Irish Bank sees bailout of 34bn Spains credit rating cut from AAA to Aa1 by Moody Unions strike across Europe

EUROHEDGE MEDIAN INDICES VSMSCI EUROPE


5/12


Asian markets rebound with positive returns

Covering the single manager hedge

fund industry in the Asia-Pacific

HEDGE FUND STRATEGIESSingle CountryAugust was a tough month and most AsiaHedge indices

were down for the month and also for the year to date. However, the

markets rebounded and all indices gained in September, bringing all

year-to-date figures back into a positive stance. Indian and Chinese equity

were the only gainers in August and both remained strong in September,

up an estimated 7.25% and 4.87%, respectively. The MSCI China was up

9.05% in September, as money continued to flow into Hong Kong and

China. Technology firms in Taiwan gained from global market strengths.

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

a double-dip into recession this year. ASEAN markets such as the

Philippines and Indonesia led the region and the MSCI Pacific ex-Japan

was up a staggering 12.96% for the month. Funds investing into Asia

excluding Japan equities did not come close to the MSCI benchmark;

however, they were still the best-performing strategy (up 7.38%).

Australian Long/Short Equity Sentiment towards equity markets

improved, as better US housing and manufacturing data and stabilising

signs in China contributed to a positive outlook. Domestically, the

federal election was finalised and economic data remained strong. The

Australian All Ordinaries was up 4.46% in September and Australian

equity funds were closely in line with the market (up 4.21%).

Outperforming sectors included materials and industrials, but

defensive sectors including REITS and healthcare underperformed.

Japanese Long/Short Equity September followed a similar trend to

August, as the market changed direction several times. Prime Minister

Naoto Kan won the Democratic Party of Japan presidential election,

which briefly sent the yen to a 15-year high. However, the Japanese

monetary authorities finally intervened in the international currency

markets and exporters were the major gainers. The Japanese market

ended the month up 3.91% (TOPIX) and 6.18% (Nikkei), with Japanese

equity funds (USD-denominated) gaining 0.99%.


Asia including Japan USD 4.46% 2.92% 6.23% 4.20%

Asia excluding Japan USD 7.38% 5.55% 7.33% 7.11%

Chinese Equity 4.87% 0.11% 5.66% 1.17%

Indian Equity 7.25% 12.35% 7.27% 14.74%

Japanese Equity USD 0.99% 0.52% 0.93% -0.80%

Japanese Equity JPY 1.96% 1.16% 2.41% -0.32%

Australian Equity AUD 4.21% 0.31% 6.61% 4.57%

AsiaHedge Composite 3.02% 3.51% 4.05% 4.16%

ASIAHEDGE INDICES (EST)

%

MSCI Pacific Free Net

AsiaHedge Composite Index

AsiaHedge Japanese Equity Index USD

AsiaHedge Asia including Japan Index USD

AsiaHedge Asia excluding Japan Index USD

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Sep-10

Sep-09

Sep-08

Sep-07

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Sep-04

Sep-03

Sep-02

Sep-01

Sep-00

EQUITY BENCHMARKSBenchmark index Sep-10 YTD

MSCI Pacific Free Net 7.62% 4.78%

MSCI Pacific ex Japan 12.96% 7.96%

MSCI China 9.05% 3.90%

China Shanghai Composite Index -1.07% -20.34%

Sensex 11.67% 14.91%

TOPIX 3.91% -6.92%

Nikkei 225 6.18% -11.16%

Australian All Ordinaries 4.46% -5.03%

Hang Seng 8.87% 2.22%

ASIAHEDGE MEDIAN INDICES VSMSCI PACIFIC FREE

MARKET EVENTS

BoJ intervenes in the currency market for first time since 2004 Chinas PMI improves for second month, indicating reaccelerating growth Malaysia announces an Economic Transformation Programme of

$444 billion over 10 years

Hong Kong dollar and RMB appreciates substantially Weak US dollar pushes up commodities


6/12


Commodities and equities perform the best

Covering the global

fund of funds industry

HEDGE FUND STRATEGIESCommodities

The InvestHedge Commodities index is, at present, one of the top-

performing strategies, up 3.48% last month, despite reporting an

estimated year-to-date loss of 1.02% and underperforming the MCSI

World Index quite considerably (up 9.32%). With funds continuing to

report, this is subject to change in the coming weeks. Several weather

events and supply shortages pushed a number of markets sharply higher,

such as cotton, due to the flooding in Pakistan; wheat, due to the drought

in Russia; sugar, due to the dry weather in Brazil; and corn, due to the

dry weather in China. The price of gold was also significantly higher.

Equities

The InvestHedge Global Equity index is among the best-performing

strategies at the moment, with the mean up 3.11% and the median up

a further 2.62%, reporting a year-to-date gain of 1.75% and 1.28%

respectively. Equity markets rallied as economic data improved, leading

to a greater investor risk appetite. The US equity markets rose due to

optimistic manufacturing, jobs and housing figures while the European

equity markets were mixed, as Spains credit rating was downgraded

followed by Irelands banking system failing, but consumer confidence

grew as retail sales in the UK hit a high and German inflation slowed.

New funds

Signet Capital Management has launched its first UCITS-compliant

multi-strategy fund of funds following growing demand from their

institutional and private bank clients. The Signet Multi-Strategy fund

offers weekly liquidity and will allocate globally to approximately 15

hedge funds that follow the limits set in the UCITS III regulations. The

fund domiciled in Dublin is intended for investors in the UK, Europe

and Asia. The fund aims to produce consistent, low-volatility returns

largely uncorrelated with traditional markets, and will be flexible in

terms of strategy, always keeping the UCITS guidelines in mind.

Mandates

Funds of funds and single-manager hedge-fund mandates seem to be

on par with one another this month as the size of individual FoHF

mandates are smaller and single-manager fund allocations are growing,

according to the InvestHedge monthly mandate tables. A number of

searches for single-manager hedge funds are still underway in a variety

of strategies at US state pensions. CalPERS put another $105 million to

work in single HF fund allocations as New Jersey prepares to put in

more than $7 billion in hedge funds to meet a larger asset allocation.

Pensions in Norway and Korea added to both single manager and FOHF

mandates, while the state of Vermont made its foray via FoHFs.


Arbitrage USD Index 1.38% 2.75% 1.38% 2.06%

Asian Pacific Fund o Funds Index 2.47% -0.03% 2.90% 0.07%

Asset Based Lending Index 0.28% 2.22% 0.28% 1.67%

Commoditi es Index 3.48% -1.02% 3.98% -0.45%

Distressed Index 1.55% 3.97% 1.76% 3.81%

Emerging Managers Index 2.01% 1.25% 2.02% 0.79%Emerging Markets Hedge USD Index 3.68% 4.67% 3.19% 3.14%

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%

Fixed Income USD Index 2.01% 6.31% 2.08% 6.06%

Global Equity USD Index 3.11% 1.75% 2.62% 1.28%

Global Macro Currency USD Index 2.45% 2.69% 2.34% 3.15%

Global Multi Strategy EUR Index 1.15% 0.48% 1.68% 0.74%

Global Multi Strategy USD Index 2.13% 2.02% 2.10% 2.02%

Leveraged Global Multi-Strategy USD Index 3.09% 4.20% 3.00% 4.87%

US Equity Index 2.78% 1.85% 2.66% 2.50%

InvestHedge Composite Index 2.23% 1.94% 2.33% 1.84%

INVESTHEDGE INDICES

%

MSCI The World Index Net

InvestHedge Leveraged Global Multi-Strategy USD

InvestHedge Global Multi-Strategy USD

InvestHedge Global Equity USD

InvestHedge European Multi-Strategy EURInvestHedge European Equity EUR

InvestHedge Composite

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Sep-10

Sep-09

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Sep-07

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Sep-02

INVESTHEDGE MEDIAN INDICES VS MSCI WORLD


7/12

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Industry news and analysis

New fund launches

Distributor profiles

Regulatory updates

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bsolute UCITS ad_Just Launched.indd 19 10/09/2010 14:22


8/12


Single-manager UCITS III news

Merchant Capital has lined up the third fund launch for its UCITS III

hedge fund platform. The Merchant Global Resources UCITS Fund is due

to launch later this month and will be run by experienced resources

investment manager Tal Lomnitzer.

HSBC Global Asset Management has rolled out a leveraged version of

its flagship macro absolute return portfolio, the HSBC GIF Global Macro

Fund. The fund is co-managed by Guillaume Rabault and Jim Dunsford,

and will invest across liquid markets in cash, equities, bonds and

currencies worldwide.

Martin Currie, the Edinburgh-based big boutique manager overseeing

$1.2 billion, is launching a UCITS III-compliant product based on the

firms ARF-Japan Fund, a long/short equity strategy launched in 2000.

Luxembourg-domiciled Japan Absolute Alpha will be managed by

John-Paul Temperley and Keith Donaldson.

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

new investment after receiving strong demand from investors. The firm

is creating an additional $250 million of capacity and will close the fund

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

liquid product centred on the fast-growing region. Salus Alpha is

partnering with an Asian fund manager to launch an existing multi-

strategy product on its UCITS III platform.

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

will follow the investment strategy of its offshore global equities fund.

The UCITS version of the British Virgin Islands-based Quant Global

Equities Fund is expected to launch in January 2011.

Multi-manager UCITS III news

Alternative asset manager Man has launched a UCITS III long/short

equity fund of funds domiciled in Luxembourg. The portfolio has

between eight and 12 managers including Marshall Wace, RWC Partners

and TT International.

Industry news

Assets under management for UCITS that use hedge fund strategies

have almost reached the $50 billion milestone. There are a total of 296

funds that have $49.2 billion AUM, according the latest research by the

HedgeFund Intelligence data team. They consist of 254 single-manager

hedge funds with combined assets of $46.1 billion, plus 42 funds of

funds with $3.1 billion assets.

Latest UCITS III developments

%

MSCI Europe - Net

HedgeFund Intelligence Global Index - CompositeHedgeFund Intelligence Global Index UCITS

EuroHedge European Equity EUR Index (Median)

EuroHedge UCITS European Equity Index (Median)

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Sep-10

Sep-09

Sep-08

Sep-07

UCITS INDICES VS EUROHEDGE EUROPEANEQUITY AND MSCI EUROPE

Medians Means

Strategy Sep-10 YTD Sep-10 YTD

Absolute UCITS European Equity Index 0.68% 0.31% 1.43% 2.14%

EuroHedge European Equity EUR Index 2.48% 2.48% 2.26% 2.97%

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%

SEPTEMBER UCITS PERFORMANCE INDICES

EQUITY BENCHMARKSBenchmark index Sep-10 YTD

MSCI Europe Net 5.31% 1.77%

FTSE 100 (London) 6.19% 2.51%

DAX (Frankurt ) 5.13% 4.56%

AbsoluteUCITS


9/12

After a rebound of some 10% buoyed by

strong performance during the second half

of 2009, assets in the global hedge fund

industry edged up at a much slower pace

during the first half of 2010. According to

our latest research, global assets were up a

modest 2% during the first half of this year

to reach a total of $1.866 trillion by the

beginning of July.

The latest numbers on global assets came

following a period of relatively flat

performance during the first half across the

hedge fund industry which implies that

any new inflows of assets must have been

more or less evenly matched by the pace of

investor redemptions.

Industry assets remain a long way below

their historic high of over $2.65 trillion set

during 2007 before the global financial

crisis took hold.As in previous years, the lions share of

global assets are managed in the United

States, with the 217 members of the

Absolute Return Billion Dollar Club aloneaccounting for combined assets of over $1.2

trillion. Globally, there are now 302 firms

that run hedge fund assets of $1 billion or

more, representing a combined total of$1.535 trillion a slightly higher propor-

tion than at the beginning of the year, and

continuing a trend whereby assets have

become ever more heavily concentrated

among the bigger firms. The top 10 firms

alone now control 15% of the global total.

New York remains the biggest single

centre of the industry, followed by London

which is still in second place. Assets in

standard European hedge funds did not rise

at all in the first half, though there was an

increase in onshore UCITS III-compliant

hedge funds to reach nearly $35 billion in

Europe (and nearly $50 billion in all)

which are not included in the totals here.

The rising centres include places in Asia

such as Hong Kong, where the number of

firms in the Billion Dollar Club jumped

from 6 to 10 in the first half of the year;

and in Latin America, where there are now

five firms with $1 billion or more in either

Sao Paulo or Rio de Janeiro.

Taken from a HedgeFund Intelligence

press release, London


Global hedge fund assets edge up to $1.87tr

Research

0

300

600

900

1,200

1,500

Rest of the worldAsiaEuropeUS

$1,342bn

Assets$

bn

$382bn

$138bn

$67bn

Rest of world Africa $7bnRest of world Canada $20bnRest of world Latin America $40bn

Asia-Pacific funds managed in Europe $12bn

Asia-Pacific funds managed in the US $30bn

Asia-Pacific funds managed in Asia-Pacific $96bn

European funds managed by US firms $21bn

European funds managed in Europe $349bnOther hedge funds managed in the US $1,291bn

Total $1,866bn

The $1.87 trillion industry: where the assets are managed

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

via funds of funds. Assets in funds of hedge funds are tracked separately byInvestHedge.

AUM $bn Number of % of total % of totalLocation firms assets fundsNY, USA 706.44 124 46.03% 39.49%London, UK 238.82 52 15.56% 16.56%CT, USA 168.1 25 10.95% 7.96%CA, USA 70.03 16 4.56% 5.10%MA, USA 89.48 12 5.83% 3.82%Hong Kong 13.47 10 0.88% 3.18%

TX, USA 25.59 8 1.67% 2.55 %NJ, USA 25.32 5 1.65% 1.59%Sydney, Australia 19.67 5 1.28% 1.59%MN, USA 16.53 5 1.08% 1.59%Singapore 6.15 5 0.40% 1.59%IL, USA 22.05 4 1.44% 1.27%Paris, France 15.39 4 1.00% 1.27%Hamilton, Bermuda 11.22 4 0.73% 1.27%Stockholm, Sweden 14.34 3 0.93% 0.96%WI, USA 9.85 3 0.64% 0.96%Rio de Janiero, Brazil 5.13 3 0.33% 0.96%Toronto, Canada 4.14 3 0.27% 0.96%Tokyo, Japan 3.92 3 0.26% 0.96%GA, USA 11.84 2 0.77% 0.64%PA, USA 11.79 2 0.77% 0.64%So Paulo, Brazil 10.31 2 0.67% 0.64%

Other 35.28 14 2.30% 4.46%Total 1,534.86 302* 100% 100%

The global billion dollar club: July 2010

Source: HedgeFund Intelligence *De-duplicated to account or groups with more than one of cial location


10/12

The worlds leadinghedge fund database

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HedgeFund Intelligence provides the most

comprehensive hedge fund, fund of funds, and UCITS

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and research, subscribers can benefit from a unique

combination of quantitative and qualitative analysis.

BiggerWith over 13,000 funds listed in the database, HedgeFund Intelligence provides

the most complete source of hedge funds, and funds of funds than any data

provider*. With three specialist regional products (Asia-Pacific, Europe and the

Americas) a global fund of hedge funds and a new UCITS Absolute Return

database, the HedgeFund Intelligence database will meet your needs.

FasterUpdated weekly with (practically) all data available within four weeks of month

end, the extensive research and editorial team ensure rapid inclusion of new

funds and updates on key data points.

ClearerThe database provides dedicated, clear and detailed information on hedge funds,

UCITS Absolute Return funds and funds of funds (without unnecessary multiple share

classes). Links to news and analysis provide additional information on funds and over

70 non-investable indices are available to benchmark performance.

TrustedWith an experienced and dedicated specialist team gathering and verifying the data

to ensure accuracy, this database is used by many of the industrys leading firms.

SimpleA user-friendly interface allows effortless sorting by multiple criteria including

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


11/12


The Hedgefund Intelligence data and research team

added 173 UCITS funds to the database during

September, as we saw the launch of Absolute UCITS

our online news offering dedicated to UCITS funds.

In total, the team added 208 funds to the database

during the month, with EuroHedge adding an

additional 15, Absolute Return + Alpha adding 10

and AsiaHedge and InvestHedge adding 8 and 2respectively. The majority of funds added were

either based in the US, London or Singapore.

In total, 55 funds were liquidated in the database

during September. Absolute Return saw the greatest

number of funds close, with 19, followed closely by

EuroHedge at 18. InvestHedge and AsiaHedge saw

10 and 8 respectively. Our Absolute UCITS database

also saw a liquidation last month, with one fundnoted as closed. On the single-manager side, over

half of the funds noted as liquidated in the

database during September closed within 2010. No

specific strategy dominated but a number of equity

strategies saw liquidations throughout September.

Hedge funds had one of their strongest months during

September posting an estimated gain of 2.20% for the

month, the strongest gain since May 2009. While 83%

of single-manager hedge funds, which have reported to

our database so far are posting positive performance

during September with a handful of funds posting

strong double-digit gains, they still managed to

underperform their equity benchmarks with the

MSCI the World Index up 6.95% as small losses from

short positions detracted from gains in their long books.

Absolute UCITS continues to attract funds

Data

GlobalBriefing: DataEurope

Samantha [email protected]

Americas

Amal [email protected]

Asia-Pacific

Wing-Yung [email protected]

Fund of Hedge Funds

Meera [email protected]

UCITS

Amy [email protected]

For more information on the database and subscriptions please contact Ian Sanderson on + 44 (0) 207 779 7339 or James Barfield on + 44 (0) 207 779 7336

If you have a fund which you wish to be included please contact the following:

NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING SEPTEMBER

NUMBER OF FUNDS LIQUIDATED DURING SEPTEMBER*

DISTRIBUTION OF PERFORMANCE

Numb

eroffundsaddedto

HFIdatabase

InvestHedge

Absolute Return Absolute UCITSAsiaHedge

EuroHedge

0

50

100

150

200

250

Sep-10Aug-10Jul-10Jun-10May-10Apr-10Mar-10Feb-10Jan-10

Numberof

fundsliquidated

InvestHedge

Absolute Return Absolute UCITSAsiaHedge

EuroHedge

0

10

20

30

40

50

60

70

80

Sep-10Aug-10Jul-10Jun-10May-10Apr-10Mar-10Feb-10Jan-10

%

0

20

40

60

80

100

NegativePositive

Sep-10

Aug-10

Jul-1

0

Jun-10

May-1

0

Apr-1

0

Mar-1

0

Feb-10

Jan-10

Dec-0

9

Nov-09

Oct-0

9

* de-duped to exclude multiple share classes


12/12


GlobalBriefing

AR Symposium workshops to

feature Utah pension exec

The full schedule for workshop

sessions at the forthcoming AR

Symposium, to be held at the New

York Athletic Club on November

2-3, has now been finalized

adding a range of important

topics and speakers from many

more major firms to the program.

Everest Capital partners with

RiceHadley Group

Everest Capital, a $2 billion global

macro hedge fund in Miami, has

formed a strategic partnership

with the RiceHadley Group, the

consulting firm founded by

former U.S. Secretary of State

Condoleezza Rice and former U.S.

National Security Advisor

Stephen Hadley, according to a

letter the firm sent to investors.

September rally pushes all

strategies into the black

With almost a quarter of

Septembers performance in so far,

it appears that hedge funds in the

U.S. are posting positive returns,

with the AR Composite Index up

an estimated 3.33%, compared to

Augusts gain of 0.42%.

Lombard Odier taps Bataillon

to run l/s European equity

Lombard Odier Investment

Managers, the institutional

asset management arm of the

200-year-old Swiss private bank

Lombard Odier Darier Hentsch

& Cie, has made a significant

addition to its hedge fund

operation with the hire of

experienced long/short equity

manager Marc Bataillon and his

team from Selectium Europe.

GLG starts UCITS version of

Atlas Macro fund

GLG Partners is launching a

UCITS-compliant version of its

high-performing GLG Atlas

Macro Fund, managed by

portfolio manager Driss Ben-

Brahim and chief investment

strategist, Jamil Baz.

Polar recruits AXA

Framlington global EM team

Polar Capital has announced

the formation of a global EM

franchise with the hiring of

an experienced three-strong

team from AXA Framlington

comprising William Calvert,

Ming Kemp and Neil Denman.

Hong Kongs DragonBack

morphs into fund platform

Hong Kong-based DragonBack

Capital is transitioning to a

platform provider for hedge

fund managers in Asia and

overseas following the recent

closure of its two strategies

and the departure of its

investment team, led by

co-founder Matthew Barnett.

LaCrosse buys BoAMLs global

fund admin business

LaCrosse Global Fund Services

has finalised its acquisition of

Bank of America Merrill

Lynchs $6 billion global fund

administration business the

latest spin-off deal of its kind

from a multibillion-dollar

financial institution.

Marble Bar rethinks Asia

strategy post closure of fund

London-based Marble Bar

Asset Management, the

long/short-focused firm,

is said to be examining

the way forward for its

Singapore office after the

closure in June of its MBAM

Pan-Asian Fund.

Plan sponsors monitor

funding status, Mercer says

Current markets present

challenges to trustees, but

it seems most are focused

on funding issues and

de-risking of their portfolio,

according to a recent survey

released by Mercer.

ABN Amro teams up with

Lyxor for hedge funds

ABN Amro Private Banking

and Lyxor Asset Management

have entered into a partner-

ship for hedge fund solutions,

enabling ABN Amros private

bank to offer its clients access

to a wide selection of Lyxors

managed account-based

hedge fund products.

Albourne grows team

exponentially

Albourne Partners, whose

clients have now placed more

than $200 billion among 1,500

hedge funds, has dramatically

grown its team and anticipates

another 10 hires before year end

in line with its commitment to

track client growth with the

firms colleague growth.

Latest WEEKLY news

Compiled by head of research & data

Damian Alexander

[email protected]

Research and data teamAmericas: Amal Robleh

Europe: Samantha Munday

Asia-Pacific: Wing Yung Lok

Funds of Funds: Meera Mehta

UCITS: Jack Young

Managing editor Neil [email protected]

Production Michael Hunt/Loveday Cuming

Group publisher John Willis

Managing director John Orchard

Subscription sales

US Matt Colbeck

[email protected]

+1 212 224 3568

Europe Jamie Austin

[email protected]

+44 (0) 20 7779 8041

Asia Robert Ball

[email protected]

+852 2842 6996

Customer Services+44 (0) 20 7779 [email protected]

Database and directory sales

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

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

Asia Robert [email protected]+852 2842 6996 1473-3 153

Email [email protected]

Telephone +44 (0) 20 7779 7330

Fax +44 (0) 20 7779 7331

Published by HedgeFund Intelligence, Nestor House,Playhouse Yard, London EC4V 5EX

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Global Briefing October 2010