The Eurekahedge Report - December 2012

Hedge funds delivered positive performance in November, despite mid-month trend reversals in various sectors due to increased risk appetite. The benchmark Eurekahedge Hedge Fund index was up 0.42% while the MSCI World Index gained 1.05% over the month. Total assets under management were up by US$7.68 billion during November, of which US$5.85 billion were added through net positive asset flows and the remaining US$1.82 billion through performance-based gains. 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:

November 2012	US$ billion
Allocation (Inflows)	33.41
Redemption (Outflows)	-27.56
Net Asset Flows	-5.85
Positive Performance (Growth)	9.92
Negative Performance (Decline)	-8.10
Total	1.82
Overall Total	7.68

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

Hedge funds report positive returns despite slow start in November

Hedge funds gain 0.52% in November

Hedge funds posted marginal gains in November amid mid-month reversals in market trends. The Eurekahedge Hedge Fund Index was up 0.52%¹ bringing its year-to-date (YTD) return to 4.51%. In contrast the MSCI World Index gained 1.05%² for the month.

Key takeaways for the month of November 2012:

• Asia ex-Japan hedge funds were up 1.20% in November, making it the 4th consecutive month of positive returns – with the funds gaining 6.07% during this period
• The asset weighted Mizuho-Eurekahedge Asia Pacific ex-Japan Index was up 12.15% November YTD
• Event driven funds in Europe posted their strongest monthly return in three and a half years - gaining 4.77% in November
• Relative value funds continued their winning streak into the sixth month, with gains of 0.62% in November and 9.36% year-to-date
• European funds focused on distressed debt have posted returns of more than 20% YTD 
• Long-only absolute return funds have delivered much stronger performance than hedge funds in 2012, up 12.23% YTD

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

The Eurekahedge Report - November 2012

Hedge funds witnessed a flat to marginally negative performance in October, amid falling equity markets, trend reversals in various sectors and increasing risk aversion among investors. The benchmark Eurekahedge Hedge Fund Index was down 0.19%while the MSCI World Index dropped by 0.76% over the month. Total assets under management (AUM) declined by US$11.47 billion during October, of which US$5.8 billion were attributed to performance and the remaining US$5.68 billion due to net outflows - bringing the total size of the industry to US$1.76 trillion.

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

October 2012	US$ billion
Allocation (Inflows)	11.04
Redemption (Outflows)	-16.72
Net Asset Flows	-5.68
Positive Performance (Growth)	26.65
Negative Performance (Decline)	-32.44
Total	-5.80
Overall Total	-11.47

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

Hedge funds end winning streak and see red during October

Hedge funds dipped 0.51% amid dim global economic outlook

Hedge funds finished October in the red amid trend reversals, across a variety of sectors, which made for a difficult trading environment. The Eurekahedge Hedge Fund Index was down 0.51%. In contrast the MSCI World Index dropped by 0.76%¹ for the month. On the whole, however, the Eurekahedge Hedge Fund Index is in positive territory for 2012 — its return now sits at 3.81% year-to-date (YTD).

Key takeaways for the month of October 2012:

• Hedge funds saw their winning streak end with a loss in October — but they remain in the black, having gained 3.81% YTD
• Asia ex-Japan mangers continued their impressive 2012 performance by gaining 1.75% in October
• The asset weighted Mizuho-Eurekahedge Asia ex-Japan Long/Short Equity Index gained nearly 2% in October, showing that the larger funds in the region delivered the strongest gains
• Distressed debt funds were up for the 4th consecutive month in October and gained 1.87% during the month – they are now up 7.31% since end-June and 10.53% October YTD 

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

The Eurekahedge Report - October 2012

Hedge funds witnessed a third consecutive month of gains in September amid rallying markets and further monetary stimulus from major central banks around the globe. The benchmark Eurekahedge Hedge Fund Index rose 1.03%¹ while the MSCI World Index returned 2.29%² over the month. US$8.1 billion in total assets were added during September, of which US$5.1 billion came from managers’ performance while the remaining US$2.9 billion came from investment inflows bringing the total size of the industry to US$1.76 trillion.

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

September 2012	US$ billion
Allocation (Inflows)	12.72
Redemption (Outflows)	-9.79
Net Asset Flows	2.93
Positive Performance (Growth)	8.10
Negative Performance (Decline)	-2.96
Total	5.14
Overall Total	8.06

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

Hedge funds see third consecutive month of positive returns

Hedge funds up 2.63% during 3Q 2012

September was another winning month for hedge funds as the sector posted its third consecutive month of positive returns. The Eurekahedge Hedge Fund Index was up 1.02%¹ in September and 2.63% dr 3Q 2012 while September year-to-date the index is up 4.23%. Global markets rallied strongly during the month on the back of monetary easing steps taken by governments - the MSCI World Index was up by 2.29%² during the month.

Key takeaways for the month of September 2012:

• Hedge funds witnessed three consecutive months of positive returns — up 2.63% in 3Q 2012.
• The Eurekahedge Hedge Fund Index is up 4.23% year-to-date with over 1000 funds up more than 10% and 500 funds up more than 15%.
• Asia ex-Japan managers gained 4.11% in September with Indian hedge funds delivering the best returns of 8.02%.
• The Mizuho-Eurekahedge Asia ex-Japan Index rose 5.70%³ in September.
• Launch activity picked up with nearly 200 funds launched in 3Q 2012.
• All regions posted positive asset flows for August while early results indicated strong allocation activity in September.

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

The Eurekahedge Report - September 2012

Hedge funds recorded their second month of gains in August amid rallying markets and further monetary stimulus from major central banks around the globe. The benchmark Eurekahedge Hedge Fund Index rose 0.63%¹ while the MSCI World Index returned 1.64%² over the month. US$7.83 billion in total assets were added during August, of which US$2.88 billion came from managers’ performance and the remaining US$4.95 billion from investment inflows. Total industry size now stands at US$1.74 trillion, the highest level since April 2012.

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

August 2012	US$ billion
Allocation (Inflows)	13.11
Redemption (Outflows)	-8.16
Net Asset Flows	-4.95
Positive Performance (Growth)	4.41
Negative Performance (Decline)	-1.53
Total	2.88
Overall Total	7.83

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

Hedge funds up for a second consecutive month

Hedge funds up 0.47% in August as market sentiment remained optimistic

Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund Index gained 0.47%¹ during the month. Market sentiment was optimistic for most of the month, with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. The MSCI World Index was up by 1.64%² in August.

Key takeaways for the month of August 2012:

• Hedge funds gained 0.47% in August and were up 3% year-to-date.
• Relative value hedge funds were up 7.34% August year-to-date and have attracted significant assets in 2012 – total AUM now stands at US$60 billion.
• Event driven posted their best return in six months – the Eurekahedge Event Driven Hedge Fund Index was up 1.65%.
• Distressed debt hedge funds also saw their best results in six months with the Eurekahedge Distressed Debt Hedge Fund Index gaining 1.07%.
• The Mizuho-Eurekahedge Emerging Markets Index rose 1.63% in August.
• CTA/managed futures funds have witnessed six months of net negative asset flows, losing US$16 billion since February 2012.

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

The Eurekahedge Report - August 2012

Hedge funds rebounded 1.10% in July after four months of negative returns, outperforming underlying markets by a small margin as the MSCI World Index returned 1.05% over the month. Most regional and strategic mandates witnessed net gains by the end of July in part due to strong rallies in the commodities and fixed income sectors. Managers added US$14.75 billion to their books through performance while investors withdrew a net US$4.19 billion from hedge funds bringing the size of the industry to US$1.74 trillion.

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

July 2012	US$ billion
Allocation (Inflows)	12.03
Redemption (Outflows)	-16.22
Net Asset Flows	-4.19
Positive Performance (Growth)	16.89
Negative Performance (Decline)	-2.14
Total	14.75
Overall Total	10.56

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

Hedge funds rebound after four months of negative returns

Hedge funds up 1.15% in July

Hedge funds posted positive returns for July, making it the first month since February to witness healthy returns. In July, the Eurekahedge Hedge Fund Index was up 1.15%¹, as managers capitalised on trends across several asset classes. Comparatively the MSCI World Index was up 1.05%².

Key highlights for July 2012:

• Hedge funds were back in the black with positive performance numbers in July after four months of negative returns.
• CTA/managed futures funds witnessed the best monthly return since December 2010, gaining 2.56% in July 2012; systematic trading managers posted 3% returns.
• The Mizuho-Eurekahedge Top 100 Index rose 2.11% in July, which was double the gain posted by global markets³.
• Latest research showed that investors increased allocations to global macro investing funds and macro managers have raised over US$25 billion June year-to-date.
• North American fixed income hedge funds witnessed their highest monthly in more than 10 years – gaining 3.95% during the month⁴.

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

The Eurekahedge Report - July 2012

Hedge funds were down for the fourth consecutive month in June, as economies in Europe announced recessions and frequent shifts in risk sentiment made it a difficult environment for traders. The composite Eurekahedge Hedge Fund Index registered a marginal loss of 0.14%while the MSCI World and the S&P Goldman Sachs Commodity Indices were up 3.65% and 1.20% respectively. Hedge funds recorded a decline of US$8.2 billion as negative performance and client redemptions led to the fall in assets under management. Total industry assets are still higher by 1.53% year-to-date and remain above the US$1.73 trillion mark. Japanese managers recorded the highest returns among regional mandates while relative value and fixed income strategies outperformed peers in June.

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

June 2012	US$ billion
Allocation (Inflows)	5.43
Redemption (Outflows)	-7.04
Net Asset Flows	-1.61
Positive Performance (Growth)	18.49
Negative Performance (Decline)	-25.10
Total	-6.62
Overall Total	-8.23

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

Hedge funds down for a fourth consecutive month

Hedge funds face tough month in June amid trend reversals and shifts in risk sentiment

Hedge funds witnessed a flat to slightly negative performance in June amid reversals in market trends. The Eurekahedge Hedge Fund Index was down 0.19% during the month, bringing its June year-to-date performance to 1.33%. In comparison the MSCI World Index was up 3.65%.

Key highlights for June 2012:

• Hedge funds posted negative returns for the fourth consecutive month in June, the longest losing streak since 2008.
• North American fixed income and relative value hedge funds gained 3.71% and 3.40% respectively in June.
• Assets in macro hedge funds at historical high levels, cross US$140 billion for the first time.
• The Mizuho-Eurekahedge Long Short Equities Index was up 1.10% in June, showing that larger funds outperformed their peers.
• Hedge funds down 2.4% in 2Q-2012, making it the worst second quarter on record for the industry.

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

The Eurekahedge Report - June 2012

Hedge funds outperformed underlying markets by 7.77% in May. The composite Eurekahedge Hedge Fund Index was down only 1.55% on the month as regional equities around the globe tumbled. Comparatively, the MSCI World Index lost 9.32% while stocks in Europe and Latin America witnessed losses of 13.42% and 13.48% respectively. All regional hedge fund mandates finished the month with negative returns although managers across the board were able to control their losses and protect their portfolios. Political instability in Europe, coupled with slowing growth in China prompted clients to redeem US$8.68 billion from hedge funds, while performance flows amounted to a decline of US$5.01 billion. Total industry assets however are higher by 2.42% year-to-date and remain above the US$1.74 trillion mark.

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

May 2012	US$ billion
Allocation (Inflows)	8.69
Redemption (Outflows)	-17.37
Net Asset Flows	-8.68
Positive Performance (Growth)	30.05
Negative Performance (Decline)	-35.06
Total	5.01
Overall Total	-13.69

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

Hedge funds outperform underlying markets by 8.08% in May

Hedge funds were down for the third consecutive month in May amid broad declines in global markets

The Eurekahedge Hedge Fund Index lost 1.24% during the month, bringing the year-to-date (YTD) May return to 2.23%. In comparison the MSCI World Index was down by 9.32%.

Key highlights for May 2012:

• Hedge funds outperformed underlying markets by 8.08% in May.
• CTA/managed futures funds gain 2.60% in largely negative month, along with a 0.65% gain in the Mizuho-Eurekahedge Macro Index.
• Assets in macro hedge funds at historical high levels, cross US$140 billion for the first time.
• Nearly 350 new hedge funds have been launched in the first five months of the year.
• 920 hedge funds are up more than 10% YTD with the most prolific strategy amongst this group being long short equities.
• In addition 153 funds are up more than 20% and 10 funds are up more than 50%.

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

Press release: All the winners from the Asian Hedge Fund Awards 2012

SINGAPORE (May 28, 2012) - The Asian Hedge Fund Awards 2012 took place on 25th May 2012, marking another year of success as Eurekahedge celebrated the best of the Asian hedge fund industry. With 320 hedge fund players in attendance, Eurekahedge gave credit to the top achievers of 2011 and 1Q 2012 and were pleased to welcome many new faces among this year’s event.

A total of 15 awards were presented on the night, and Segantii Asia-Pacific Equity Multi-Strategy Fund took centre stage by winning the coveted award of Best Asian Hedge Fund in addition to Best Asian Multi-Strategy Hedge Fund.

The remaining awards for top performers in the region went to Nezu Japan Fund for Best Japan Hedge Fund, Tairen China Fund for Best Greater China Hedge Fund, CC Asia Absolute Return Fund for Best Asia ex-Japan Hedge Fund and Alithion Japan Fund for Best Singapore Hedge Fund.

Key highlights of this year’s awards were Fortress Asia Macro Fund who took the stage for Best New Asian Hedge Fund and Peter Fletcher’s acceptance of the Special Achievement Award – awarded in recognition of Mr. Fletcher’s influence on the Asian hedge fund industry since the 1990s, as well as his work in founding the Rice charity.

Other big winners included Ortus Fund for Best Asian FX Investing Fund, BIA Pacific Macro Fund for Best Asia-based Global Macro Fund, Pengana Asia Special Events Fund for Best Asian Event Driven Fund, Regal Amazon Market Neutral Fund for Best Asian Relative Value Fund, Monsoon Asia-Pacific Systematic Program for Best Asia-based CTA/Managed Futures Fund, MNJ Asia-Pacific Absolute Return Fund for Best Asian Quant Fund and Sensato Asia Pacific Master Fund for Best Asian Long/Short Equity Fund.

Eurekahedge’s partnership with the charity Rice this year saw SGD$44,000 being raised through a charity auction. This amount will be dedicated towards Rice’s philanthropic efforts in improving the lives of children across Asia via their respective charities. Eurekahedge would like to thank all winning bidders for their contributions in supporting this cause.

Eurekahedge would also like to take this opportunity to thank their many sponsors, participants, delegates and judges who were committed to the success of this year’s awards. The company remains committed to celebrating the industry’s successes and hopes to welcome all of this year’s attendees back in 2013 – after what is sure to be an eventful year!



About Eurekahedge
Founded in 2001, Eurekahedge is an independent financial data and research company focusing on alternative investments. Eurekahedge maintains coverage on over 26,000 alternative funds globally and its research covers hedge funds, funds of funds, UCITS III hedge funds, private equity funds, Islamic funds, real estate funds, SRI funds and long-only absolute return funds.

In addition to fund data Eurekahedge publishes over 100 alternative investment benchmark indices along with the monthly Eurekahedge Report covering asset flows, fund performance, macroeconomic trends, league tables and specific index returns on the hedge fund industry.

For further information, please contact:

Contact Details
Sultan Arif
Head of Marketing and Corporate Communications
sultan[@]eurekahedge[.]com
+65 6212 0930

Eurekahedge Pte Ltd, Level 4
101C Telok Ayer Street
Singapore
068574
+65 6212 0900
www.eurekahedge.com

###

The Eurekahedge Report - May 2012

Hedge funds outperformed underlying markets in April with a -0.17% return and witnessed strong net flows of US$10.41 billion from investors. Total inflows amounted to US$28.13 billion while client redemptions added to US$17.72 billion. The MSCI World Index dropped 1.62% on the back of rising eurozone sovereign yields, weak US economic data and slow Chinese growth. Managers added US$1.34 billion through performance with Latin American focused and relative value mandates delivering the highest returns. Total assets under management rose back above the US$1.76 trillion mark primarily due to asset gains seen in long/short equity and North American funds.

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

April 2012	US$ billion
Allocation (Inflows)	28.13
Redemption (Outflows)	-17.72
Net Asset Flows	10.41
Positive Performance (Growth)	2.35
Negative Performance (Decline)	-1.02
Total	1.34
Overall Total	11.75

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

Hedge funds over US$500m only ones to finish positively in a negative month for industry

Large hedge funds gain 0.47% in April, while smaller hedge funds finish in negative territory

Hedge fund returns were flat to slightly negative in April as most regions and strategies witnessed marginal movements during the month. As managers provided downturn protection amid declining markets globally, the Eurekahedge Hedge Fund Index was down 0.07% and the MSCI World Index declined 1.62%.

Key highlights for April 2012:

• The asset-weighted Mizuho-Eurekahedge Top 100 Index increased 0.28% in April 2012, confirming a better month for larger funds.
• Relative value and fixed income hedge funds are a bright light in the industry - they have now witnessed five consecutive months of positive returns with gains of 5.91% and 4.56% respectively.
• Launch activity has remained strong in 2012 with more than 150 funds launched worldwide as at the end of April 2012.
• Assets in distressed debt hedge funds were back above US$60 billion.
• The Eurekahedge Latin American Hedge Fund Index saw a surge of 6.45% at end-April 2012.

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

The Eurekahedge Report - April 2012

The Eurekahedge Hedge Fund Index was flat to marginally negative through March, losing 0.18% for the month, with the year-to-date figure standing at 4.08%. Japanese hedge funds posted the best monthly returns among regional mandates while Latin American, Asia ex-Japan and European managers outperformed their underlying equity markets. Managers increased their total assets for the quarter by US$47.9 billion through performance and investment flows, with the former accounting for US$40 billion of capital flows. Inflows from investors in the first three months of 2012 amounted to US$7.9 billion, bringing the current assets under management to US$1.75 trillion

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

March 2012	US$ billion
Allocation (Inflows)	9.30
Redemption (Outflows)	-21.92
Net Asset Flows	-12.62
Positive Performance (Growth)	-1.15
Negative Performance (Decline)	0.75
Total	-0.40
Overall Total	-13.02

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

Equity investing hedge funds witness their best quarter since Q3 2009

Long/short equity, multi-strategy and relative value funds enjoy their best quarter since Q3 2009

After experiencing the best start to a year since 2000, hedge funds paused for a breather in March 2012, delivering a marginally negative performance. With the exception of the US, most markets across the globe registered declines and the Eurekahedge Hedge Fund Index dipped 0.14% in March with the MSCI World Index up by 0.39% for the month.

Key highlights for March 2012:

• Long/short equity, multi-strategy and relative value funds witnessed their best quarter since 3Q 2009 with gains of 6.1%, 4.93% and 4.29% respectively.
• Assets in hedge funds crossed US$1.76 trillion, gaining over US$50 billion during the first three months of 2012.
• Long-only absolute return funds saw gains of 11.4% in the first quarter of this year.
• Hedge fund managers employing non-conventional strategies have grown their assets to an all time high of US$63.2 billion.
• Relative value managers reached US$50 billion of capital for the first time on record.
• Islamic funds outperformed other alternative vehicles, gaining 0.63% during March 2012.
•  More than 100 hedge funds have been launched globally as at the end of March this year.

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

Eurekahedge Funds of Hedge Funds Survey Results - May 2011

The Eurekahedge Funds of Hedge Funds Survey is a new feature of The Eurekahedge Report, highlighting where funds of hedge funds intend to invest in the coming six months. The results are complied through the use of a survey distributed to a representative global sample of 100 funds of hedge funds. Eurekahedge asked funds of hedge funds to indicate how they are planning to allocate capital to hedge funds across different regional and strategic mandates.

The results of the survey shown in The Eurekahedge Report are limited to regional hedge fund investment mandates only – this document goes into the results in greater detail. These detailed results will only ever be disseminated to survey participants and Eurekahedge subscribers who request them.

Regional mandates

As shown in Table 1, for the next 3 months funds of hedge funds have positive view overall on the hedge fund industry with 20% looking to increase their allocations to at least one of the underlying regions. 73% of funds of hedge funds intend to maintain their current allocations while 7% will be looking to decrease their allocations to at least one region.

Amongst all regional mandates, Asia ex-Japan hedge funds are attracting the most interest with 36% of our survey participants looking to increase their allocations over the next 3 months. North American hedge funds are also attracting increasing interest from fund of funds managers while views on Europe and Japan are more balanced.

Table 1: Survey results for funds of hedge funds regional allocations

	Asia ex-Japan	Japan	Europe	Latin America	North America	Total
Increasing allocation	36%	16%	12%	15%	19%	20%
Decreasing allocation	4%	14%	10%	1%	5%	7%
Net	32%	1%	2%	13%	14%	13%
Maintaining current allocations	60%	70%	78%	84%	76%	73%
Total responses	75	76	83	68	83	385
Source: Eurekahedge

Figure 1: Percentage of funds of hedge funds increasing/decreasing regional allocations

Source: Eurekahedge

Strategic mandates

Table 2 shows the survey results by strategic mandates. For the next 3 months, funds of hedge funds have an overall positive view on the different strategies, with 25% looking to increase their allocations to at least one of the underlying regions. 63% of funds of funds intend to maintain their current allocations while 13% will be looking to decrease their allocations to at least one strategy. Event driven and CTA/managed futures appear to be the most popular strategies going forward and will be attracting more capital from 44% and 32% of funds of funds that have a mandate to allocate to these strategies. The outlook on long/short equity funds shows the greatest mix; with 37% of survey participants looking to increase allocations and 20% looking to decrease allocations. Distressed debt funds might be facing redemptions, as 23% of funds of funds indicate that they will be decreasing allocations.

Table 2: Survey results for funds of hedge funds strategic allocations

	Arbitrage	CTA/ managed futures	Distressed debt	Event driven	Fixed income	Long/ short equities	Macro	Multi- strategy	Relative value	Total
Increasing allocation	22%	32%	4%	44%	26%	37%	21%	8%	23%	25%
Decreasing allocation	6%	8%	23%	5%	14%	20%	15%	12%	14%	13%
Net	16%	24%	-19%	40%	13%	17%	6%	-4%	9%	12%
Maintaining current allocations	72%	60%	73%	51%	60%	43%	64%	80%	63%	63%
Total responses	79	87	79	81	80	86	80	83	79	734
Source: Eurekahedge

Figure 2: Percentage of funds of hedge funds increasing/decreasing strategic allocations

 

Source: Eurekahedge