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.