The Eurekahedge Report - January 2013

Hedge funds delivered positive performance in December, despite mid-month trend reversals in various sectors due to increased risk appetite. The benchmark Eurekahedge Hedge Fund index was up 1.46%¹ while the MSCI World Index gained 2.22%² over the month. Total assets under management were up by US$1.4 billion during December – the sector added performance-based gains of US$9.9 billion while witnessing net negative asset flows of US$8.5 billion. The total size of the industry now stands at US$1.77 trillion.

Highlights of hedge fund performance and asset flows for the month are as follows:

December 2012	US$ billion
Allocation (Inflows)	26.18
Redemption (Outflows)	-34.72
Net Asset Flows	-8.54
Positive Performance (Growth)	11.19
Negative Performance (Decline)	-1.26
Total	9.94
Overall Total	1.40

To read more, please see full Eurekahedge Report, also accessible on Scribd & Issuu.

Hedge funds end 2012 with gains of 6.19%, assets at US$1.78 trillion

2012 finished up on a positive note with hedge funds posting substantial gains across all regional and strategic mandates in December. The Eurekahedge Hedge Fund Index was up 1.46%¹, bringing its year-to-date return to 6.19%. The capital-weighted Mizuho-Eurekahedge Top100 Index, which tracks the assets and performance of the largest 100 hedge funds, gained 5.82% in 2012.

Key takeaways for the month of December 2012:

• The Eurekahedge Hedge Fund Index was up 1.46% in December and up 6.19% in 2012
• Distressed debt funds continued to be the year’s best performing strategy with gains of 1.61% in December and 12.87% year-to-date

• Total asset flows for the year stood at US$69 billion, taking the size of the industry to US$1.78 trillion
• North American hedge funds attracted the most assets out of all regions in 2012 with inflows of US$56 billion, 5% growth. Relative value mandated funds witnessed the largest percentage increase in AUM year on year - US$11 billion, or up 23% in 2012
• 821 funds were launched in 2012 with 778 closures as compared with 1139 launches and 841 closures in 2011
• In 2012, 1664 hedge funds reported annual returns above 10% and 555 hedge funds with an annual return above 20%
• Latin American (10.30%) and Eastern European & Russian (7.95%) funds were 2 of the regional mandates that outperformed equity markets

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.