Hedge Fund Performance Commentary for the Month of August 2012

September 2012

Introduction Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund 1 Index gained 0.63% 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. 2 The MSCI World Index was up by 1.64% in August. Most asset classes posted excellent gains during the month amid an environment of resurgent risk 3 appetite to the markets. The BofA-ML High Yield Index was up 1.21% in August while the S&P 4 Goldman Sachs Commodity Index gained 6.37% during the month. The year-to-date (YTD) returns of the Eurekahedge Hedge Fund Index currently stand at 3.16%, while the MSCI World Index is up 7.79% YTD. While this may seem like an underperformance, hedge funds have provided these returns with less than a third of the monthly volatility witnessed in global markets. August 2012 and July 2012 returns
1.5% 1.0% 0.5% 0.0% (0.5%) (1.0%) North America Europe Japan Asia ex-Japan Latin America Aug-12 Eurekahedge Hedge Fund Index

Jul-12 Source: Eurekahedge

Most regional mandates finished the month in positive territory with managers allocating to the Americas leading the way. The Eurekahedge Latin American Hedge Fund Index was up 0.98% while North American managers gained 1.06% during the month. Although the markets posted a drop at the start of the month ...

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1 2 3 4

Based on 57.74% of funds which have reported August 2012 returns as at 17 September 2012 The MSCI AC World Index All Core Local Currency Bank of America Merrill Lynch US High Yield Master II Index (Total Return Index, in Local Currency) S&P Goldman Sachs Commodity Index Total Return

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