2015 Apr EH21

APRIL 2015
MICA (P) 014/07/2014
15
27
30
Asset Flows
Update for
the Month of
March 2015
Hedge Fund
Performance
Commentary for
the Month of
March 2015
2014 Overview:
Key Trends in
Asian Hedge
Funds
Top 10 Tables
Index Return
Matrix
EUREKAHEDGE: +1 646 380 1932 (US) | +65 6212 0925 (Singapore) | advisor@eurekahedge.com | www.eurekahedge.com
EUREKAHEDGE ASIAN HEDGE

FUND AWARDS
22 MAY 2015
CAPELLA SINGAPORE
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and sponsorship opportunities available, please contact our awards team on
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Asian Hedge Fund
Awards 2015
ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015
Introduction
Hedge funds edged even higher in March to close at another record high, with the Eurekahedge Hedge Fund Index gaining 0.78%1,
2
outperforming underlying markets as the MSCI World Index fell 0.39%. Easy monetary policy in Japan and Europe continued to
push regional equities into record territory, while US market volatility rose with increasing uncertainty over the Federal Reserves
timing of interest rate hikes and the outcome of the Greek talks.
Final asset flow figures for February revealed that managers reported performance-based gains of US$19.2 billion while
recording net asset inflows of US$17.9 billion. Preliminary data for March shows that managers have posted performance-based
gains of US$10.1 billion while recording net inflows of US$0.9 billion, bringing the current assets under management (AUM) of
the global hedge fund industry to a total of US$2.19 trillion over US$50.0 billion higher than the record US$2.14 trillion
reported last year.
Figure 1: Summary monthly asset flow data since January 2011
60
40
2,050
20
1,850
0
1,650
AssetflowinUS$billion
TotalassetsinUS$billion
2,250
(20)
1,450
Jan11
Jun11
Nov11
Apr12
Performancebasedgrowth
Sep12
Feb13
Jul13
Netassetflows
Dec13
May14
Oct14
(40)
Mar15
Totalassets
Source: Eurekahedge
Key highlights for March 2015:
1
2
Hedge funds returned US$54.1 billion in performance-based gains for the first quarter of 2015; their highest Q1 gains
on record since 2006 which brings the total industry AUM to a record high of nearly US$2.2 trillion.
Asia ex-Japan investing funds have delivered the best returns globally and were up 2.08% for March, led by Greater
China focused funds which gained 4.85%.
European hedge funds were up 4.21% in Q1 2015 and have grown their asset base by US$10.5 billion which brings their
current AUM close to a record high of US$500 billion.
CTA/managed futures funds have reported asset inflows of US$9.7 billion for the first quarter of 2015, reversing a trend
of nearly uninterrupted outflows since 2H 2013.
North American managers lead in terms of net investor inflows recording US$8.4 billion in new allocations, roughly half
the level seen for the same period last year.
Based on 37.99% of funds which have reported March 2015 returns as at 15 April 2015
MSCI AC World Index (Local)
THE EUREKAHEDGE REPORT APRIL 2015

Table 1: Performance-based changes in assets and asset flows in March 2015
Assets at start
Net growth
(performance)
Net flows
Assets at end
% change in assets
2185.6
10.1
0.9
2196.7
0.51%
Asia ex-Japan
148.6
1.1
0.3
150.0
0.97%
Japan
16.4
0.1
0.0
16.5
0.56%
Europe
495.7
2.1
(0.4)
497.3
0.33%
Latin America
56.5
0.3
(0.8)
56.0
(0.92%)
North America
1468.4
6.6
1.9
1476.8
0.57%
Arbitrage
134.0
(0.0)
2.8
136.8
2.11%
CTA/managed futures
217.9
3.0
3.2
224.1
2.82%
Distressed debt
62.2
(0.0)
0.0
62.2
0.00%
Event driven
225.3
0.2
(1.7)
223.8
(0.65%)
Fixed income
174.0
0.1
(0.5)
173.6
(0.21%)
Long/short equities
750.3
2.2
(1.4)
751.0
0.10%
Macro
159.3
0.3
(0.6)
159.0
(0.17%)
Multi-strategy
350.2
4.3
(1.2)
353.3
0.90%
Relative value
58.0
0.1
0.0
58.1
0.24%
Others
54.5
(0.1)
0.2
54.7
0.25%
20
16.5
0.0
0.2
16.7
1.16%
>20-50
37.1
0.1
(0.3)
36.9
(0.60%)
>50-100
52.4
0.2
(0.3)
52.3
(0.23%)
>100-250
211.4
0.8
(2.6)
209.6
(0.85%)
>250-500
296.9
1.1
(5.9)
292.2
(1.60%)
>500-1000
445.4
1.1
(0.5)
446.0
0.13%
>1000
1125.9
6.9
10.3
1143.0
1.53%
Hedge funds
By geographic mandate
By strategic mandate
By fund size
Note: All figures are in US$ billion, and rounded up to 1 decimal place
Source: Eurekahedge
North American funds recorded net asset inflows of US$1.9 billion while posting performance-based gains of US$6.6 billion
during the month of March. Net asset allocations to the region since the start of the year stand at US$8.4 billion, while managers
have delivered performance-based gains of US$36.2 billion over this time period. Total assets in North American hedge funds
breached past the US$1.47 trillion mark this month, the highest level on record.
European fund managers recorded net outflows of US$0.4 billion, while registering performance-based gains of US$2.1 billion
during the month. European funds have experienced net asset outflows almost every month since July 2014 as redemptions
picked up pace, with underlying regional market outlook remaining lukewarm compared to other geographic mandates. Total
assets in European hedge funds now stand at US$497.3 billion, having once again surpassed their June 2014 high of US$496.2
billion led by performance-based gains from strongly performing markets in the region due to determined quantitative easing
from the European Central Bank.

Asian funds posted performance-based gains of US$1.2 billion in March as managers focused on Greater China counters
realised strong gains during the month, while net inflows to Asia ex-Japan funds came in at US$0.3 billion over the same period.
Japan mandated funds also saw their second consecutive month of asset inflows after nearly three quarters of outflows, though
the inflows were rather marginal. On a year-to-date basis Asia ex-Japan hedge funds have recorded US$1.3 billion in net capital
allocations, although the net flows into Japan investing hedge funds are marginally negative, totalling US$0.1 billion.
Latin American funds continued to see significant capital outflows from the region, reporting another month of net asset
outflows while simultaneously posting performance-based gains of US$0.3 billion during the month. The decrease in commodity
prices, improving returns from developed markets and sharp currency depreciations relative to the US dollar have all
contributed towards prompting investors to withdraw their funds from the region. Thus far, Latin American hedge funds have
experienced 10 consecutive months of investor redemptions, with net asset outflows year-to-date totalling US$1.8 billion as of
last count. Total assets now sum up to US$ 56.0 billion, its lowest level in two years.
Figure 2: March 2015 asset flow by geographic mandate
7
6
5
4
3
2
1
0
(1)
AsiaexJapan
Japan
Europe
Performancebasedgrowth/(decline)(US$billion)
LatinAmerica
NorthAmerica
Netflows(US$billion)
Source: Eurekahedge
Figure 3: 2015 year-to-date asset flows by geographic mandate

40
30
20
10
(10)
AsiaexJapan
Japan
Europe
LatinAmerica
NorthAmerica
Source: Eurekahedge
Figure 4 gives a breakdown of performance-based gains and net flows for the hedge fund industry by various strategies for the
month of March. Asset flows were mixed across the strategies, with CTA/managed futures funds recording the highest net

inflows of US$3.2 billion while arbitrage came in a close second at US$2.8 billion. Meanwhile, event driven and long/short equity
strategies experienced outflows as investors withdrew an additional US$1.7 billion and US$1.4 billion respectively.
Long/short equity funds resumed their trend of redemptions following a brief reversal last month, having experienced only one
month of inflow since August 2014. Net flows for the previous eight months came in negative at US$11.3 billion despite strong
performance-based gains of US$31.6 billion over the same period, with over two-thirds of it lost during December and January
alone. Nevertheless, long/short equity hedge funds have seen net outflows of US$1.2 billion for 2015 year-to-date as investors
interest in the strategy waned after an extended market bull run that pushed the US S&P 500 index into record highs during the
year. The Eurekahedge Long Short Equity Hedge Fund Index is up 3.21% as at March 2015 year-to-date, corresponding with
performance-based gains of US$14.2 billion over this period. Total assets in long/short equity hedge funds currently stand at
US$751.0 billion, closing in on their December 2007 historic high of US$756 billion.
Figure 4: March 2015 asset flow by strategy employed
5
4
3
2
1
0
(1)
(2)
Arbitrage
CTA/managed
futures
Distressed
debt
Eventdriven
Fixedincome
Long/short
equities
Macro
Multistrategy Relativevalue
Others
Source: Eurekahedge
Figure 5: 2015 year-to-date asset flow by strategy employed

24
20
16
12
8
4
0
(4)
(8)
Arbitrage
CTA/managed
futures
Distressed
debt
Eventdriven
Fixedincome
Long/short
equities
Macro
Others
Source: Eurekahedge
CTA/managed futures funds saw a further recovery from the wave of redemptions that have plagued the strategy since 2H 2013,
reporting the highest asset inflow out of all strategic mandates during March (US$3.2 billion). Net capital allocations for 2015
totalled up to a solid US$9.7 billion, a far cry from 2014 when investors withdrew US$16.1 billion from the said strategy.
5

Performance-based gains were equally positive, coming in ahead at US$10.4 billion thus far this year due to a more than
favourable environment for their strategies.
Fund managers deploying arbitrage strategies snapped an eight-month streak of outflows, reporting the second highest fresh
capital inflow of US$2.8 billion for March. Arbitrage funds have recorded investor redemptions of US$8.9 billion since the second
half of 2014 with AUM shrinking from US$143.4 billion in June 2014 to US$136.8 billion currently largely on account of these
investor withdrawals.
Event driven funds reported the largest outflow in March, seeing significant withdrawals worth US$1.7 billion during the month.
Similar to long/short equity funds, they have also been suffering from recent investor redemptions, reporting net asset outflows
every single month thus far this year. Net outflows for Q1 2015 sum up to US$3.1 billion, compared to performance-based gains
of US$1.3 billion during the same period.
Table 2: Performance-based changes in assets and asset flows March 2015 year-to-date
Assets at start
Net growth
(performance)
Net flows
Assets at end
% change in assets
2136.2
54.1
6.4
2196.7
2.83%
Asia ex-Japan
144.4
4.3
1.3
150.0
3.88%
Japan
16.2
0.4
(0.1)
16.5
1.81%
Europe
486.8
12.0
(1.4)
497.3
2.17%
Latin America
56.5
1.2
(1.8)
56.0
(0.99%)
North America
1432.2
36.2
8.4
1476.8
3.12%
Arbitrage
133.6
1.8
1.4
136.8
2.44%
CTA/managed futures
204.0
10.4
9.7
224.1
9.85%
Distressed debt
61.9
0.1
0.2
62.2
0.48%
Event driven
225.7
1.3
(3.1)
223.8
(0.80%)
Fixed income
172.4
1.8
(0.6)
173.6
0.71%
Long/short equities
738.0
14.2
(1.2)
751.0
1.76%
Macro
155.6
4.8
(1.4)
159.0
2.20%
Multi-strategy
331.7
19.6
2.0
353.3
6.51%
Relative value
58.8
0.1
(0.8)
58.1
(1.25%)
Others
54.5
(0.0)
0.2
54.7
0.36%
20
16.0
0.1
0.4
16.5
3.17%
>20-50
36.2
0.3
0.1
36.6
1.20%
>50-100
52.4
0.4
(0.5)
52.3
(0.17%)
>100-250
206.9
2.5
(0.5)
208.9
0.95%
>250-500
289.8
3.7
2.3
295.9
2.08%
>500-1000
438.2
3.7
0.9
442.7
1.03%
>1000
1096.7
22.9
(2.8)
1116.8
1.83%
Hedge funds
By geographic mandate
By strategic mandate
By fund size
Note: All figures are in US$ billion, and rounded up to 1 decimal place
Source: Eurekahedge

Figures 6 and 7 below illustrate performance and net asset flows across the various fund size categories since January 2013.
Over the 27 month period depicted, the global hedge fund industry has raked in performance-based gains of US$243.2 billion,
with billion dollar hedge funds accounting for over half of these gains as they have delivered cumulative performance-based
gains of US$140.1 billion since the start of 2013. Their performance-based gains for the first quarter of 2015 alone totalled
US$35.9 billion, the highest year-to-date gain throughout the entire period. Funds managing assets in the US$100 million to
US$500 million range have seen performance-based gains of US$59.3 billion which compares with only US$10.1 billion in
performance-based gains posted by funds in the less than US$100 million range.
A similar picture emerges based on net asset flows, with the global hedge fund industry attracting US$178.8 billion since January
2013, out of which billion dollar hedge funds accounted for US$147.6 billion of these net capital allocations, while funds with
assets under US$500 million collectively recorded net asset outflows of US$23.4 billion over this period. Given this preference on
part of investors to allocate to the larger billion dollar hedge funds, the success of small to medium sized hedge funds (less than
US$500 million) will become increasingly dependent on the skill of the managers in growing them to a point where they can
gather enough scale to attract large institutional investors. Only the billion dollar fund category reported net inflows during the
month of US$10.3 billion, which was roughly matched by outflows from the smaller funds.
Figure 6: Performance based gains/losses by fund size
MonthlyPerformanceFlows
CumulativePerformanceFlows
150
20
Performancegains/losses(US$billion)
Performancegains/losses(US$billion)
30
10
0
(10)
(20)
(30)
100
>5001000
>100500
100
50
>1000
100
(US$million)
>5001000
>100500
>1000
(US$million)
Source: Eurekahedge
Source: Eurekahedge
Figure 7: Net asset flows by fund size

MonthlyAssetFlows
CumulativeAssetFlows
40
200
30
150
20
100
Flows(US$billion)
Net assetflows (US$billion)
50
10
0
(10)
(20)
50
0
(50)
(30)
100
>5001000
>100500
100
>1000
>100500
(US$million)
(US$million)
Source: Eurekahedge
>5001000
Source: Eurekahedge
>1000
PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015
Introduction
Hedge funds reported their third consecutive month of gains, returning 0.78%1 and outperforming underlying markets as the
2
MSCI World Index finished the month down 0.39%. Global equity markets performance was mixed, with overall gains seen in
Europe and Japan while US equity markets retreated following weaker durables data signalling that perhaps the stronger dollar
is finally beginning to bite into the US economic recovery. Although expected, the Federal Reserve made headlines during the
month by dropping the word patience from its statement, opening up the possibility of an interest rate hike as soon as June but
simultaneously reassuring investors that any rise would be gradual. European Central Bank quantitative easing remained in full
effect, pushing Eurozone government bond yields further into unprecedented negative territory. Meanwhile, Greece moved
dangerously closer to a default as funds began to run low while negotiations appeared to be at an impasse. While European
governments and banks have made contingency plans for a Greek default, the full impact of a Grexit remains unknown.
Figure 1: February and March 2015 returns across regions
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
NorthAmerica
Europe
Japan
AsiaexJapan
Feb15
LatinAmerica
EHHedgeFundIndex
Mar15
Source: Eurekahedge
Asia ex-Japan managers were the best performers during the month, returning 2.08%. Greater China equities were a major
winning theme - the CSI 300 Index soared 13.74% amid speculation that the government would take steps to support faltering
economic growth, while Chinese property developers rallied sharply as the government enacted policies to urge local authorities
to restrict land supply. European funds were also up 0.98%, although following underlying markets higher as the MSCI Europe
3
Index gained 0.76% on Euro weakness and the prospect of a delay in US interest rate hikes. Funds focused on Latin America
and North America outperformed underlying markets which were in negative territory, gaining 0.70% and 0.49% respectively.
The US S&P 500 Index ended the month lower by 1.74% as a strong dollar and weak corporate earnings growth put a dent in
investor optimism. Japanese managers came in last place with gains of 0.17%, trailing the Nikkei 225 which climbed 2.18%.
In terms of 2015 year-to-date returns, Asia ex-Japan managers lead the table with returns of 4.55%, attributing much of their
gains to a strong showing in Greater China and India mandated funds. Funds with a European and North American mandate
came in second and third place, delivering returns of 4.21% and 2.30% respectively. Japan and Latin America focused funds were
tied for last place with returns of 0.73%.
Based on 37.99% of funds which have reported March 2015 returns as at 15 April 2015
MSCI AC World Index(Local)
3
MSCI Europe Index All Core (Local)
2

Figure 2: 2015 year-to-date returns across regions
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
NorthAmerica
Europe
Japan
AsiaexJapan
LatinAmerica
EHHedgeFundIndex
Source: Eurekahedge
Mizuho-Eurekahedge Asset Weighted Index

The asset weighted Mizuho-Eurekahedge Index gained 0.11% in March . The top 100 constituents performed better than their
smaller counterparts, up 0.76% in comparison. It should be noted that the Mizuho-Eurekahedge Index is US dollar denominated
and as such during months of strong US dollar gains, the index results include the currency conversion loss for funds that are
denominated in other currencies. Based on the US dollar index, the US dollar appreciated another 3.20% in March.
The asset weighted Mizuho-Eurekahedge Emerging Markets Hedge Fund Index took a hit in March, closing sharply down 4.21%.
Emerging markets mandates slid lower on currency weakness and another fall in commodity prices, with the MSCI Emerging
4
Markets Latin America Index plunging 7.63%. The Mizuho-Eurekahedge Emerging Markets Hedge Fund Index is now down 5.24%
year-to-date - the largest annual decline since 2008.
Figure 3a: Mizuho-Eurekahedge Indices
March 2015 returns
Figure 3b: Mizuho-Eurekahedge Indices

March 2015 year-to-date returns
2%
6%
1%
4%
0%
2%
(1%)
0%
(2%)
(2%)
(3%)
(4%)
(4%)
(5%)
(6%)
2015YTD
Mar15
Main
AsiaPacific
Multistrategy
Source: Eurekahedge
Top100
Long/shortequities
Emergingmarkets
Main
AsiaPacific
Multistrategy
Source: Eurekahedge
MSCI EM Latin America Index IMI (USD)
Top100
Long/shortequities
Emergingmarkets
Strategy Performance
All hedge fund strategies with the exception of arbitrage funds reported positive returns in March. CTA/managed futures funds
resumed their spot at the top of the table, gaining 1.28%, followed by macro (up 0.95%) and long/short equities (up 0.91%).
Arbitrage funds, were in the red with losses of 0.02%. In terms of 2015 year-to-date returns, CTA/managed futures funds
maintained a good lead over other strategies despite their dismal returns in February, topping out the table with gains of 4.97%.
Figure 4: February and March 2015 returns across strategies
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
(0.5%)
Arbitrage
CTA/managed
futures
Distressed
debt
Eventdriven Fixedincome
Long/short
equities
Macro
Feb15
EHHedge
FundIndex
Mar15
Source: Eurekahedge
Figure 5: 2015 year-to-date returns across strategies
6%
4%
2%
0%
Arbitrage
CTA/managed
futures
Distressed
debt
Eventdriven Fixedincome
Long/short
equities
Macro
Multistrategy Relativevalue EHHedgeFund

Index
Source: Eurekahedge
Arbitrage and relative value

The Eurekahedge Arbitrage Hedge Fund Index slipped 0.02% in March yet remaining largely unchanged as they were lifted by gains
in European focused funds which were up 0.37% although North American managers were a drag on performance, losing 0.11%.
The CBOE VIX, an indicator of market volatility, ended March up 14.62% to close at 15.29 amid uncertainty over the timing of
future interest rate hikes as the stock markets retreated during the month.
10
Relative value funds were up 0.27% for the month, although paling in comparison to the previous month when it was up 1.63%.
As of March year-to-date, the mandate has returned 1.48%, out of which North American managers gained 1.94% while
European funds suffered losses of 1.26%.
Figure 6a: Arbitrage and relative value
March 2015 returns
Figure 6b: Arbitrage and relative value

1.0%
2.0%
0.8%
1.5%
1.0%
0.6%
0.5%
0.4%
0.0%
0.2%
(0.5%)
0.0%
(1.0%)
(0.2%)
(1.5%)
Arbitrage
Relativevalue
Allregions
Europe
NorthAmerica
LatinAmerica
Source: Eurekahedge
Arbitrage
Allregions
Europe
Relativevalue
NorthAmerica
LatinAmerica
Source: Eurekahedge
Long/short equities and fixed income

Long/short equity managers registered gains of 0.91% in March, with all regional mandates in positive territory even as markets
in North America and Latin America underperformed. Asia ex-Japan managers gained 1.73%, attributing their gains to Indian and
Greater China funds. Funds with exposure to Chinese counters reaped a windfall as the CSI 300 Index soared 13.74%, while
Indian long/short equity managers gained 3.46% despite a broad 4.32% fall in the BSE Sensex. European managers followed
underlying regional markets upwards, reporting the next largest gain of 1.08%. Despite strong headwinds, North American
managers reported a gain of 0.23%, with the S&P 500 Index losing 1.74% as the strong US dollar began to weigh on the US
recovery. Similarly, Latin American mandates were only marginally up, returning 0.07% but beating the MSCI Latin America
5
Index which fell 1.42%. Japanese funds lagged behind, gaining only 0.06% even as the Nikkei climbed 2.18% on the back of wage
increases and improving business fundamentals.
The Eurekahedge Fixed Income Hedge Fund Index ended the month up only 0.19% as the ECB begun its asset purchase programme
while the Federal Reserve and Bank of England both changed their stance against raising rates in the near future. Concern over a
scarcity in the supply of bonds drove government yields lower during the month despite a rise in market expectations of
inflation. Fixed income funds struggled to come to grips with the new economic reality of negative long term rates as the
European Central Banks determination to fight inflation pushed fixed income assets into unchartered territory, with yields on
almost a third of the European government bonds below zero. Latin American mandates gained 1.07% although Asia ex-Japan
funds were down 1.22%.
11
MSCI EM Latin America Index IMI (Local)

Figure 7a: Long/short equities and fixed income
March 2015 returns
Figure 7b: Long/short equities and fixed income

2.0%
6%
1.5%
5%
4%
1.0%
3%
0.5%
2%
0.0%
1%
0%
(0.5%)
(1%)
(1.0%)
(2%)
(1.5%)
(3%)
Long/shortequities
Allregions
LatinAmerica
Fixedincome
NorthAmerica
AsiaexJapan
Long/shortequities
Europe
Japan
Source: Eurekahedge
Allregions
LatinAmerica
Fixedincome
NorthAmerica
AsiaexJapan
Europe
Japan
Source: Eurekahedge
Event driven and distressed debt

The Eurekahedge Event Driven Hedge Fund Index was up 0.71% in March, with all regional mandates in positive territory. The
strategy returned 2.70% during the first quarter of the year, also aided by strong M&A activity worldwide. Global M&A volume in
6
Q1 2015 reached US$887.1 billion up 23% from the same period last year; out of which 38% came from Asia Pacific. Asia exJapan funds reported a spectacular gain of 11.76% during the month, due to strongly performing equity markets and IPO activity
in Greater China.
The Eurekahedge Distressed Debt Hedge Fund Index managed to hold on to its gains after snapping a five month losing streak,
gaining another 0.62% in March and bringing year-to-date returns up to 1.21%. Capital inflows into high yield debt increased
over the past month as investors searched for yield, while modest economic growth and continued low interest rates were seen
to reduce the default rate. European managers reported gains of 0.46% in March, while North American funds were up 0.36%.
Figure 8a: Event driven and distressed debt
March 2015 returns
Figure 8b: Event driven and distressed debt

12%
14%
10%
12%
10%
8%
8%
6%
6%
4%
4%
2%
2%
0%
0%
EventDriven
Allregions
LatinAmerica
Distresseddebt
NorthAmerica
AsiaexJapan
Source: Eurekahedge
Europe
Japan
EventDriven
Allregions
LatinAmerica
Distresseddebt
NorthAmerica
AsiaexJapan
Europe
Japan
Source: Eurekahedge
Dealogic M&A Statshot 03-Feb-2015
12
CTA/managed futures and macro

The Eurekahedge CTA/Managed Futures Index moved back into the top spot this month, gaining 1.28% and maintaining its strong
lead over all other mandates with year-to-date returns of 4.97%. Funds which had currency and equity exposure reported the
biggest gains, largely from the long USD/short euro trade and long European/Japanese equities. Europe focused funds were up
2.27%, followed by North American managers gaining 1.12%, while Asia ex-Japan funds were up 0.62%.
Macro managers delivered a further 0.95% in March, capitalising on primary macro themes such as the weak global demand and
inflation as well as central bank currency wars and ongoing quantitative easing. Long positions in Japanese and European
equities continued to contribute strongly to performance, although funds which were positioned for a rise in yields amid a
strengthening US and UK economy were caught out as inflationary expectations remained low. The market now appears to
expect the Federal Reserve to raise rates only in Q3 or Q4 2015 as compared to June previously, given an overly strong dollar,
deflationary pressures and a fall in the real equilibrium rate of interest
Figure 9a: CTA/managed futures and macro
March 2015 returns
Figure 9b: CTA/managed futures and macro

2.5%
6%
2.0%
5%
4%
1.5%
3%
1.0%
2%
0.5%
1%
0.0%
CTA/managedfutures
Allregions
LatinAmerica
NorthAmerica
AsiaexJapan
0%
Macro
CTA/managedfutures
Europe
Allregions
LatinAmerica
Source: Eurekahedge
NorthAmerica
AsiaexJapan
Macro
Europe
Source: Eurekahedge
Multi-strategy and insurance-linked securities

The Eurekahedge Multi-Strategy Hedge Fund Index rose 0.68% in March, led by Asia ex-Japan focused managers reporting the
biggest gains of 4.10%, followed by Latin American funds with 1.52%. North American managers were the only mandates in
negative territory, losing 1.46%. Equities continued to form a major component of multi-strategy fund portfolios, with central
bank quantitative easing and accommodative monetary policies still in effect.
Insurance-linked securities offer investors direct access to the reinsurance market, which can include various insurance perils
such as catastrophic events. Windstorms Mike and Niklas ravaged Europe during the month, causing over US$1 billion in
estimated losses. Meanwhile, yields continued to fall, in line with declining rates in the overall reinsurance sector, although
capital has continued to flow into the asset class amid the lack of higher yielding assets elsewhere, which has driven up
catastrophe bond prices and acted as further pressure on yields. As such, gains for March were limited, with the index producing
returns of 0.12% while gaining 0.76% year-to-date.
13
Figure 10a: Multi-strategy and insurance linked securities

March 2015 returns
Figure 10b: Multi-strategy and insurance linked securities

5%
7%
4%
6%
3%
5%
2%
4%
1%
3%
0%
2%
(1%)
1%
(2%)
Multistrategy
Allregions
LatinAmerica
Source: Eurekahedge
Insurancelinked
securities
NorthAmerica
AsiaexJapan
0%
Multistrategy
Europe
Japan
Allregions
LatinAmerica
Insurancelinked
securities
NorthAmerica
AsiaexJapan
Europe
Japan
Source: Eurekahedge
14
2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS
Introduction
The Asian hedge fund industry has kept up a steady pace of growth and returns comparable to that seen over the same period
last year, with modest February year-to-date gains of 1.64%. Total assets under management (AUM) increased by US$3.5 billion
largely supported by performance-based gains, bringing the total size of the Asian hedge fund industry to US$164.2 billion
managed by a population of 1,382 hedge funds.
As at end-1999, the size of the industry stood at US$14 billion, growing to US$176 billion over the next eight years by end-2007
a period which saw strong growth in the hedge fund industrys tilt towards Asia. By end-2007, the total fund population in the
region stood at 1,237 funds up from 145 funds in 1999. Gains realised over this period were partially reversed by the advent of
the global financial crisis which saw the Eurekahedge Asia Hedge Fund Index decline by 20.48% in 2008, ushering in a spate of fund
liquidations as managers struggled to deal with negative returns and redemption requests from investors. The industry
bottomed out in April 2009 with AUM declining to a low of US$104.8 billion before witnessing a rebound of sorts amid rallying
equity markets and some positive asset flows in the second half of 2009. Upward trajectory in the industry continued in 2010,
realising strong performance-based growth as the Eurekahedge Asian Hedge Fund Index gained 9.17% during the year.
Figure 1a: Industry growth since 1999
1,600
200
1,400
180
Numberoffunds
140
1,000
120
800
100
600
80
60
400
AUM(US$billion)
160
1,200
40
200
20
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
AUM(US$billion)
2010
2011
2012
2013
2014 Feb15
Numberoffunds
Source: Eurekahedge
In 2011 the industry shed some of its earlier gains as the Eurozone sovereign debt crisis dominated market sentiment resulting
in US$6.4 billion worth of performance-based losses for fund managers in the second half of the year alone. While 2012 saw
Asian managers post a mild recovery in terms of performance, net asset flows were in the red with the industry losing US$4.4
billion through redemptions.
Figure 1b: Contribution of performance and investor allocation to industry growth
Performanceandassetflows(US$billion)
60
40
20
0
(20)
(40)
(60)
2006
Source: Eurekahedge
15
2007
2008
2009
Netgrowth(performance)
2010
2011
Netflows
2012
2013
Assetsatend
2014
Feb15
2013 provided the much needed turnaround for the industry, with performance-based gains of US$10.2 billion and net asset
allocations of US$11.0 billion as the theme of a global economic recovery began to gather more credence. Going into 2014,
growth was somewhat slower during the year as net flows into Asia fell despite performance-based gains remaining strong,
sustained by equity market outperformance particularly from India and Greater China in the latter half of 2014.
In 2015 thus far, investors have remained cautious about investing more into hedge funds and the markets in general, following
heightened market valuations and the potential for a pullback, although hedge funds continue to perform. Since the start of
2013, Asian hedge fund AUM has grown by 29.9% but are yet to breach their 2007 peak of US$176 billion.
Industry composition and growth trends

Asset flows
Asset flows were mixed throughout 2012 with total AUM increasing marginally by US$2.7 billion as performance-based gains
were eroded by net outflows from the industry, with most of the outflows occurring in the fourth quarter. 2013 saw a
resurgence in the industry with net asset inflows totalling US$11.0 billion and performance-based gains in the order of US$10.2
billion as the Eurekahedge Asia Hedge Fund Index gained 14.99%. Asset growth continued unabated in 2014 to 2015, with Q1 2015
registering the ninth consecutive month of AUM increase to reach US$164.2 billion in total assets as of February 2015. A large
part of the US$16.6 billion growth in AUM since the start of 2014 has been attributed to performance-based gains, due to strong
returns on the part of managers with India and Greater China exposure.
Figure 2: Quarterly asset flows in Asian hedge funds since December 2011
10
170
165
160
155
150
145
140
135
(2)
AUM(US$billion)
Assetflows(US$billion)
130
(4)
125
(6)
120
Q12012
Q22012
Q32012
Q42012
Q12013
Netgrowth(performance)(LHS)
Q22013
Q32013
Netflows(LHS)
Q42013
Q12014
Q22014
ChangeinAUM(LHS)
Q32014
Q42014
Q12015
Assetsatend(RHS)
Source: Eurekahedge
Launches and closures

Figures 3a and 3b track the pace of launches and closures in the Asian hedge fund space since 2008. Hedge fund attrition rates
spiked up post the financial crisis with a total of 184 fund liquidations in 2008. The number of fund closures dwarfed launches in
the fourth quarter of 2008 as fund managers posted heavy losses amid a global financial meltdown following the collapse of
Lehman Brothers. The industry saw some respite from mid-2009 to end-2010 as launch activity picked up while fund liquidation
was relatively subdued. This period saw a number of fund managers set up shop in Asia; particularly in Hong Kong and
Singapore, as financial regulation in the US clamped down on investment banks proprietary desks. The second half of 2011 saw
another spike in fund liquidations amid worsening global economic outlook with Asia ex-Japan and globally focused funds seeing
the highest attrition rates. Liquidation rates remained high throughout 2012, taking their toll on the smaller hedge funds which
failed to qualify for their performance fees. Currently 275 new funds have been launched in Asia since 2013. There has been a
trend of smaller hedge fund start-ups joining platform service providers which provide non-investment services to hedge funds,
lowering their compliance and administration costs. This development is expected to make smaller funds more viable by
lowering the barriers to entry, thus encouraging more new hedge fund entrants to the industry.
16

Figures 3a-3b: Launches and closures of Asian hedge funds
80
70
Launches/closures
60
50
40
30
20
10
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015
Launches
Source: Eurekahedge
Closures
The chart below shows the breakdown of fund launches and closures by strategic mandate. Over 50% of fund launches have
been dedicated to the long/short equity strategies while fixed income, macro, CTA/managed futures and multi-strategy share
over 35% of the fund launches between them. As illustrated, total launches and closures for long/short equity managers were
pretty evenly matched in the last six years, with launches overtaking closures owning to strong launch activity in 2014 and 2015.
Attrition rates for long/short equities saw a sharp rise after the steep losses suffered during the financial crisis but the sector has
since begun to see renewed interest as equities have continued to perform strongly over the past few years.
Relativevalue
Others
Multistrategy
Macro
Long/shortequities
Fixedincome
Eventdriven
Distresseddebt
CTA/managedfutures
Arbitrage
0
Source: Eurekahedge
100
200
Launchessince2008
300
400
500
600
Closuressince2008
Fees
As shown in Table 1, average management fees have stayed relatively stable at around 1.60% from 2006 to 2015, though dipping
to 1.50% and 1.46% respectively in 2013 and 2014. Average performance fees, however, have been falling since 2006, reaching a
new low of 15.50% in 2015. The traditional 2 and 20 hedge fund management and performance fee structure has become less
and less common, with investors questioning whether their investment performance commensurate with their high fees. Being
a relatively late entrant to the hedge fund industry and a favourable incubation ground for new hedge funds, Asia still possesses
a high proportion of hedge fund start-ups which would be more willing to negotiate lower fees to attract seed capital. This has
contributed to the downward pressure on hedge fund fees in recent years.
17

Table 1: Average Asian hedge fund fees by launch year
Year
Average performance fees (%)
Average management fees (%)
2006
18.35
1.59
2007
18.38
1.63
2008
17.48
1.59
2009
17.40
1.68
2010
18.30
1.61
2011
17.62
1.60
2012
17.56
1.60
2013
17.07
1.50
2014
16.78
1.46
Feb-15
15.50
1.63
Source: Eurekahedge
Fund size
The breakdown of the Asian hedge fund industry by fund size displays interesting trends emerging in the industry. The
percentage of funds managing up to US$100 million in assets has increased from 65.7% in 2007 to 77.0% by 2015 - peaking at
79.4% briefly in 2010 on the back of renewed launch activity in the region which saw a number of small hedge funds enter the
industry. The proportion of hedge funds managing less than US$100 million in the region has remained high over the years as
investors have increasingly shied away from smaller hedge funds thereby limiting their ability to grow their fund size. Funds
managing in excess of US$100 million controlled 34.3% of the Asian hedge fund space in 2007, with their share dropping to
20.6% by 2010 on the back of performance-based losses and heavy redemptions following the financial crisis. It has since
marginally recovered to 23.0% as of 2015, with most of the gains coming from larger hedge funds (>US$500 million).
Figure 4: Breakdown of fund population by fund size (US$ million)
120%
100%
2.6%
0.8%
1.4%
3.6%
2.3%
3.8%
11.0%
6.5%
10.9%
17.0%
15.9%
13.5%
22.8%
25.8%
40.7%
37.6%
2010
2015
80%
60%
40%
20%
16.5%
8.9%
8.9%
20.6%
28.7%
0%
2007
<=20
2150
51100
101200
201500
5011000
>1000
Source: Eurekahedge
18
Geographic mandates
Asset allocation by geographic mandate in Asia has been influenced by an overall decline in AUM in the region since the highs of
2007 and a general rebalancing of manager portfolios to gain wider exposure to the underlying markets. This trend has driven
an increase in the AUM share of globally mandated funds from 14.5% in 2008 to 17.0% by 2015. Collective asset allocation to
single country mandated funds, such as those focused on Japan, India, Korean and Taiwan, has also slightly decreased from
17.1% in 2007 to 13.0% in 2015 as managers have sought to diversify their regional exposure. Similarly, the share of emerging
markets focused funds fell by 5.1% since 2007 as investors have sought exposure to the underlying markets via globally
mandated funds, with the trend gaining momentum as emerging markets come under further pressure on the back of the winddown in the Feds QE. Managers investing in Greater China have seen their share of AUM increase the most, rising by 8.8% over
the past seven years as fund managers were attracted by the growth in HNWI (high net worth individuals), Chinas continued
economic expansion since the financial crisis and performance gains from rallying equity markets in the region.
Figure 5: Geographic mandates by assets under management
120%
0.1%
100%
13.5%
0.5%
12.1%
3.0%
80%
11.9%
18.6%
21.2%
17.0%
12.2%
3.6%
7.4%
5.5%
27.9%
18.4%
25.6%
14.2%
16.8%
12.9%
14.5%
12.5%
4.1%
40%
0.4%
1.6%
13.6%
9.8%
60%
0.1%
0.2%
0.0%
20%
0.9%
0%
2007
AsiaexJapan
AsiaincJapan
2010
Australia/NewZealand
Emergingmarkets
2015
Global
GreaterChina
India
Japan
Korea
Taiwan
Source: Eurekahedge
Strategic mandates
In terms of the composition of the industry by strategic mandate, the Asian hedge fund industry delineates some interesting
trends; the most striking being a 16.0% decline in the share of long/short equity funds from 2007 to 2015. A great part of this
contraction happened during the financial crisis - the Eurekahedge Asia Long Short Equities Hedge Fund Index declined 21.8% in
2008 as long/short equity managers posted heavy losses. Furthermore, as the Asian hedge fund industry has matured,
managers have diversified away from long/short equity strategies (which are strongly correlated to the underlying markets)
towards multi-strategy, event driven and macro strategies which have seen their share of AUM increase by 8.0%, 4.5% and 4.1%
respectively since 2007. We expect this diversification to increase in the region, especially for Greater China focused funds as the
Chinese economy transitions to relatively lower rates of economic growth, which will squeeze gains derived from a largely beta
driven approach. The share of CTA/managed futures funds rose from 5.1% in 2007 to a 6.7% in 2010 as investors looked towards
them for diversification given their low correlation to underlying markets. However as of February 2015, CTA/managed futures
funds comprise only 2.0% of total Asian hedge fund AUM with investor redemptions forcing a number of trend following funds
to close shop.
19

Figure 6: Strategic mandates by assets under management
120%
1.01%
1.44%
1.51%
100%
1.88%
14.13%
80%
15.60%
5.95%
1.46%
1.83%
22.08%
8.70%
10.04%
60%
54.55%
45.76%
38.51%
40%
20%
5.21%
5.44%
5.08%
0%
5.77%
9.02%
2.88%
3.88%
6.72%
2007
Arbitrage
Long/shortequities
Source: Eurekahedge
CTA/managedfutures
Macro
8.19%
9.95%
4.25%
1.85%
3.24%
2010
Distresseddebt
Multistrategy
2.00%
2.07%
2015
Fixedincome
Relativevalue
Eventdriven
Others
Head office location

Figures 7a and 7b display the changes in head office location of Asian hedge funds over the years. In 2009, 33.7% of the funds
were based either in the US or UK, which has declined to a share of 25.6% by 2015 as Asia has seen strong launch activity
centred on its key financial centres. Hong Kong is now the premier choice of location for Asian hedge funds, increasing from a
market share of 16.7% in 2009 to 23.2% by 2015. A similar shift has been seen in favour of Singapore which now hosts the
second largest population of Asian hedge funds - 16.7% by market share. Australias share has declined marginally although it
still ranks in the top five locations of choice for fund managers in Asia.
The above trends have been driven by a combination of factors that have pushed investors away from the more developed
hedge fund markets in the West towards the high growth economies in the East. Regulatory pressures and relatively higher
taxation rates in Europe and the US, coupled with an increasingly competitive hedge fund landscape have made it difficult for
fund managers to trade profitably. Asian markets on the other hand are growing and less crowded, hence offering ample
opportunities for managers. The exponential rise in the number of accredited investors (HNWI) in Asia promises fund managers
with a pool of potential investors and thus the prospects of locating in Asia have appeared even more attractive. Local factors,
such as the presence of seasoned traders who have built their experience through years of experience in the financial markets
and government policies which encourage hedge fund start-ups have further contributed to the gravitation towards Asia.
Figures 7a-7b: Head office locations by number of funds
United
States
14.5%
Feb2009
United
States
13.3%
Singapore
12.9%
HongKong
16.7%
Feb2015
United
Kingdom
12.3%
Singapore
16.7%
Australia
11.4%
United
Kingdom
19.2%
Japan
5.3%
Others
13.1%
HongKong
23.2%
France
3.0%
Switzerland
1.6%
Source: Eurekahedge
Australia
9.8%
Japan
4.8%
Luxembourg
2.3%
Others
14.2%
Luxembourg
2.4%
Source: Eurekahedge
China
1.7%
Switzerland
1.8%
20
Performance review
This section of the report begins with an evaluation of the overall performance of the Asian hedge fund industry by comparing
their returns with alternative investment vehicles. We further look at the performance of Asian fund managers across regional
and strategic mandates and conclude with a comparison of their returns across various fund sizes.
Figure 8: Performance of Asian hedge funds versus market index and other investment vehicles
400
350
300
250
200
150
100
50
0
EurekahedgeAsianHedgeFundIndex
EurekahedgeAsiaPacificAbsoluteReturnFundIndex
EurekahedgeAsiaPacificFundofFundsIndex
MSCIACAsiaPacificIMILocalIndex
Source: Eurekahedge
In Figure 8, Asian hedge fund managers have outperformed competing investment vehicles with the Eurekahedge Asian Hedge
Fund Index gaining 253.44% since December 1999, compared with the MSCI AC Asia Pacific IMI Local Index which was up only
13.64% over the same period. Fund managers have also beaten absolute return vehicles which gained 240.30% over the same
time period, and although the Eurekahedge Asia Pacific Absolute Return Fund Index appears to be closely trailing the Eurekahedge
Asian Hedge Fund Index, it was nearly twice as volatile with an annualised standard deviation of 12.26% compared with 6.54% for
the Eurekahedge Asian Hedge Fund Index over the past five years. Asian hedge fund managers have also adapted better to market
volatility post the financial crisis, offering the best reward-to-risk profile Sharpe Ratio of 1.37 and 0.77 over the last three and
five years respectively.
Table 2: Performance across alternative investment vehicles
Eurekahedge Asian
Hedge Fund Index
Eurekahedge Asia Pacific

Absolute Return Fund Index
Eurekahedge Asia Pacific

Fund of Funds Index
MSCI Asia Pacific

IMI Local Index
February 2015 year-to-date

returns
1.64%
4.10%
1.59%
6.46%
2014 returns
6.83%
12.43%
5.98%
5.17%
3 year annualised returns
8.79%
11.98%
7.45%
12.02%
3 year annualised standard

deviation
4.96%
9.06%
4.84%
10.29%
1.37
1.10
1.13
0.97
7.03%
9.63%
4.82%
7.22%

deviation
6.54%
12.26%
5.81%
12.51%
0.77
0.62
0.48
0.42
3 year Sharpe Ratio (RFR = 2%)

Source: Eurekahedge
21
Figure 9 shows the performance of Asian hedge funds across geographic mandates, with all regional mandates in positive
territory for February 2015 year-to-date returns. India focused funds seem on track to repeat their stellar performance in 2014,
delivering 6.07% so far this year. They delivered exceptional performance in 2014, with the Eurekahedge India Hedge Fund Index
gaining 38.83% during the year. The election of the pro-business party BPJ in India and the promise of reforms led to widespread
investor optimism and soaring equity markets in the country. Greater China funds also did quite well, returning 8.11% in 2014
though trailing the meteoric 51.66% rise in the CSI 300 index. A combination of expansionary monetary policy and the opening
of the Hong Kong-Shanghai connect saw the Chinese equity markets post strong rallies during the last few months of the year.
Asia ex-Japan focused hedge funds were up 9.46% in comparison to Pan-Asia investing hedge funds which gained 6.83% for
2014, with their larger exposure to the strongly performing Indian and Chinese equity markets.
Figure 9: Performance of geographic mandates
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Asia
AsiaexJapan
Source: Eurekahedge
Australia/New
Zealand
February2015yeartodatereturns
GreaterChina
2014returns
India
Japan
Taiwan
3yearannualisedreturns
Table 3 summarises the key performance indicators for Asian hedge funds by regional mandates over both a three year and five
year time horizon. In terms of their reward to risk profiles, Australia/New Zealand focused funds have delivered excellent risk
adjusted returns (Sharpe ratios of 2.18 and 1.50 for both time periods). It is also interesting to note that they offer the lowest
annualised volatility, which is in stark contrast to other single country investment mandates such as India and Taiwan and even
lower than that of more diversified mandates such as Asia. Indian fund managers, despite their stellar returns in 2014, possess
the lowest three year Sharpe ratio of 0.55 due to their high volatility and poor showing in 2013.
Table 3: Performance of geographic mandates
Asia
Asia exJapan
Australia/
New Zealand
Greater
China
India
Japan
Taiwan
February 2015 year-to-date returns
1.64%
2.44%
3.19%
1.43%
6.07%
0.53%
2.65%
2014 returns
6.83%
9.46%
6.52%
8.11%
38.83%
5.86%
1.92%
8.79%
9.17%
11.60%
10.90%
10.39%
11.53%
8.05%

deviation
4.96%
5.96%
4.41%
7.86%
15.24%
6.30%
7.59%
1.37
1.20
2.18
1.13
0.55
1.51
0.80
7.03%
7.26%
10.98%
7.50%
6.00%
8.68%
5.70%

deviation
6.54%
8.50%
5.97%
10.05%
15.19%
6.13%
11.98%
0.77
0.62
1.50
0.55
0.26
1.09
0.31

Source: Eurekahedge
22
Figure 10 segregates the Asian hedge fund industry by strategy employed, with the various strategic mandates all reporting
positive performance for 2015 and 2014. The Eurekahedge Asia CTA/Managed Futures Hedge Fund Index gained an impressive
3.49% in the first two months of the year, although it is pertinent to note that there are only a handful of funds in this sector.
They are followed by relative value and arbitrage managers who were both up 2.80% as at February 2015 year-to-date. For 2014,
event driven funds delivered the highest returns of 12.57%, lifted by their exposure to Asian equities, while Asian fund managers
deploying macro strategies delivered the worst return, only gaining 0.63% for the year.
Figure 10: Performance across strategic mandates
16%
14%
12%
10%
8%
6%
4%
2%
0%
Arbitrage
Source: Eurekahedge
CTA/managed
Eventdriven
Fixedincome
Long/short
Macro
Multistrategy
futures
equities
2014returns
Relativevalue
In Table 4, event driven strategies offered the best reward to risk profile over a three year time horizon (Sharpe ratio 1.95)
followed by arbitrage (1.81) and long/short equities (1.34). Long/short equities, which is the most popular strategy among Asian
hedge funds posted risk adjusted returns of 0.69 over the five year time horizon.
Table 4: Performance across strategic mandates
Arbitrage
CTA/
managed
futures
Event
driven
Fixed
income
Long/short
equities
Macro
Multistrategy
Relative
value
February 2015 year-to-date

returns
2.80%
3.49%
1.43%
1.02%
1.53%
0.78%
1.55%
2.80%
2014 returns
8.78%
10.02%
12.57%
4.10%
6.70%
0.63%
9.39%
10.11%
7.09%
6.43%
14.27%
3.80%
9.44%
2.71%
6.38%
7.50%

deviation
2.82%
4.72%
6.28%
3.66%
5.54%
3.89%
4.25%
7.97%
1.81
0.94
1.95
0.49
1.34
0.18
1.03
0.69
5.17%
7.28%
12.64%
6.86%
7.01%
3.70%
5.51%
7.86%

deviation
3.87%
4.87%
6.67%
6.92%
7.24%
4.07%
5.28%
8.19%
0.82
1.08
1.60
0.70
0.69
0.42
0.67
0.72

Source: Eurekahedge
Performance and hedge fund size

For February 2015 year-to-date returns, large Asian hedge funds (>US$250 million) posted the strongest returns (up 1.88%) in
comparison to small and medium sized hedge funds. Similarly, over a three and five year time horizon large Asian hedge funds
23
(>US$250 million) have posted the best risk adjusted returns with a Sharpe ratio of 1.77 and 0.90 respectively. Over both time
periods under consideration, larger funds also posted smaller standard deviations, pointing towards an increased emphasis on
risk management and perhaps a more cautious investment strategy.
Figure 11: Performance of Asian hedge funds by fund size
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
EurekahedgeLargeAsianHedgeFundIndex
(>US$250m)
EurekahedgeMediumAsianHedgeFundIndex
(US$50mUS$250m)
2014returns
EurekahedgeSmallAsianHedgeFundIndex
(<US$50m)
Source: Eurekahedge
Table 5: Performance by fund size

Large Asian Hedge Fund
( > US$250m )
Medium Asian Hedge Fund

( US$50m - US$250m )
Small Asian Hedge Fund

( < US$50m )
February 2015 year-to-date returns
2.80%
3.49%
1.43%
2014 returns
8.78%
10.02%
12.57%
7.09%
6.43%
14.27%
3 year annualised standard deviation
2.82%
4.72%
6.28%
1.81
0.94
1.95
5.17%
7.28%
12.64%
5 year annualised standard deviation
3.87%
4.87%
6.67%
0.82
1.08
1.60

Source: Eurekahedge
24
MANAGER INTERVIEW (VIDEO)
Interview with Christian Stauffer, CEO at EuroFin Asia Group

Founded in 2003, EuroFin Asia Group (EFA Group) is an independent specialty finance house offering investment opportunities across
the capital structure spectrum, with a focus on real economy businesses and is located in Singapore and Geneva. Managing open-ended
credit funds since 2006, EFA Group finances a combined portfolio of approximately 100 real-economy companies in the commodity &
natural resources sectors across Asia Pacific, Europe & Middle East.
With 25 years experience in trade finance, structured finance and commodities trading, get a flavour of commodity trade finance with
Christian Stauffer, CEO at EFA Group on how the structural aspects of trade finance funds offer income generating opportunities despite
the banking regulations most recently brought by Basel III.
Because we are in tangible, real asset flows, we are not subject to correlations to the main market,
be it equity, fixed income, real estate..."
Please click here or on the image above to watch the video interview. For more details or enquiries on participating in our new
video interview, please contact advisor@eurekahedge.com.
25
ASIAN HEDGE FUNDS TOP 10 TABLES
March 2015 Returns (%)*
3-Month Returns (%)
Cedar Lake India Alpha Fund
21.04
Global Capital Allocation Fund
44.67
APS China A Share Fund - Class A
18.52
32.09
APS Greater China Long/Short Fund - Class A
16.59
Geneva Global Macro
29.77
Geneva Global Macro
16.49
27.11
UG Hidden Dragon Special Opportunity Fund
11.76
26.93
APS Asia-Pacific Long Short Fund - Class A
10.99
GCI Systematic Macro
21.21
Blue Sky SRA Alliance Fund - IS 16Q
10.81
Brilliant Partners Fund LP
17.24
UG Greater China Multi-Strategy Fund
9.94
MS Dalton Asia Pacific UCITS Fund - Class B1 EUR
16.41
Lighthorse China Growth Fund
8.70
14.11
InnoFusion Asia Multi-Strategy Fund
7.80
GAM Asia Equity Hedge - USD Open
12.51
2015 YTD Returns (%)

2014 Returns (%)

44.67
Daman Fifth Fund
231.91
32.09
Passage to India Opportunity Fund (Cayman) Ltd - Class A

Share
225.21
Geneva Global Macro
29.77
129.31
27.11
India Insight Value Fund
103.72
26.93
Geneva Global Macro
75.60
21.21
Helios Strategic Ltd
74.56
17.24
Takumi Capital Management LP
71.73
16.41
67.23
14.11
Malabar India Fund LP
65.54
GAM Asia Equity Hedge - USD Open
12.51
The Mayur Hedge Fund
61.03
Annualised Returns (%)**
Annualised Standard Deviation**
140.19
Asian Strategic Orient Fund
1.06
Geneva Global Macro
113.90
GCI Japan Rates Fund
1.72
40.72
Gyrostat Capital Stability Fund
2.66
Galaxy China Deep Value Fund
32.50
GF China RMB Fixed Income Fund Class I
3.31
Morphic Global Opportunities Fund
28.77
Silverdale Fixed Income Fund
3.45
Silverdale India Equity Fund
25.65
IP All Seasons Bond Fund - Class A
3.56
Lighthorse Global Fund
25.34
AlphaGen Hokuto Fund - USD
4.22
LHC Capital Australia High Conviction Fund
22.71
Wisdom of Japan Fund - JPY
4.24
Knight Mekong Fund
22.59
Emirates MENA Fixed Income Fund - Class I Acc USD
4.28
Elite Fund
21.91
Whitehaven SPC Correlation Fund SP - AUD
4.36
Sharpe Ratio**
Sortino Ratio**
Asian Strategic Orient Fund
6.75
31.58
5.69
21.91
Geneva Global Macro
5.46
13.44
3.37
10.87
3.13
Knight Mekong Fund
10.08
3.13
Backbone Asia
7.87
2.71
7.31
Backbone Asia
2.40
Yaraka Fund
6.62
Yaraka Fund
2.23
5.40
2.13
Rockhampton Fund - USD
4.65
* Based on 37.99% of funds which have reported March 2015 returns as at 15 April 2015
** For funds with a track record of at least 12 months as at end-March 2015
27
HEDGE FUNDS STRATEGY TOP 10 TABLES (MAR YTD)**
Arbitrage
CTA/Managed Futures
Polaris Capital Management
10.62
DH Boote Program
53.15
Aroya Investment Partners LP - Class A
7.47
44.67
Libra Commodity Fund
4.99
Index Mechanics BV
37.70
Done Hedge Fund
4.57
Dynex Ironstone AlgoHigh Beta
31.86
Tenor Opportunity Fund
4.03
Quaesta Capital v-Pro Dynamic Volatility Program
29.71
Prologue Feeder Fund Ltd - Class A Shares - Series USD
3.69
SEB Asset Selection Opportunistic - Class IC EUR
19.25
3.40
QCM Global Diversified Programme
18.99
Helium Performance Fund - Class A Shares
3.36
Key Trends Fund Ltd
17.79
IPS Strategic Capital Absolute Return Strategy Moderate Composite
3.24
QCM Alpha Financials Programme
17.30
ABCA Opportunities Fund - Class A
3.09
Hasenbichler Futures Diversified Fund SPC
16.98
Distressed Debt
Event Driven
MS Algebris Global Financials UCITS Fund - Class B EUR
20.29
Accendo Capital
27.39
Hof Hoorneman Phoenix Fund
5.82
Amagis Global Equity Arbitrage Fund
23.62
Regan Distressed Credit Fund LP
2.75
Equinox Russian Opportunities Fund Ltd
18.36
MidOcean Credit Opportunity Fund
2.44
Magna Undervalued Assets Fund - Class N EUR
13.15
Candlewood Special Situations Fund LP
1.59
8.79
KS Capital Partners LP
(0.66)
Omni Event Fund
7.97
KS International Inc
(0.72)
Vertex Fund - Class A
7.92
TIG Distressed Opportunities LP/Ltd
(3.65)
Corsair Select LP
6.10
Simplon International Ltd
(5.43)
MLIS York Event Driven UCITS - EUR B Acc
6.00
Simplon Partners LP
(5.55)
Twin Offshore Ltd
5.52
Fixed Income
Long/Short Equities
Candriam Equities B European Property Securities - Class C EUR
14.99
Absolute Value Fund
125.23
DKAM Capital Ideas Fund LP
12.50
32.09
GAM Star Discretionary FX - USD (Acc)
9.27
Laur Capital Partners LP
28.29
Magna New Frontiers Fund - Class N
7.90
27.11
JABCAP Global Balanced Fund - Class D1 USD
7.62
GAM Star Continental European Equity - EUR (Acc)
22.51
JPM Investment Funds - Global Capital Preservation Fund USD Class A EUR Hedged
7.11
GAM Star European Equity - EUR (Acc)
21.24
FISCO Appreciation Plus Fund LP
7.05
Lucerne Capital Fund LP
20.59
CCP Total Return Fund I LLC
5.08
Passport Special Opportunities Fund
19.52
Silverdale Bond Fund
4.97
17.24
Avaron Eastern Europe Fixed Income Fund
4.78
16.41
Geneva Global Macro
29.77
Bridgewater Pure Alpha 18% Volatility Strategy
14.43
21.21
Mandrill Master Fund Ltd
13.88
Catalyst Macro Strategy Fund - Class I
19.78
Telemetry Fund I LP
12.27
Sparta Cclico
16.25
Dynamo Cougar
10.41
CF Eclectica Absolute Macro Fund - Class A GBP
13.61
SEB Asset Selection Fund - Class C EUR
9.78
Forum Global Opportunities Fund Ltd
13.19
Bridgewater Pure Alpha 12% Volatility Strategy
9.43
Quaesta Capital Global Opportunities EUR B
12.54
Parvest Step 90 Euro - Classic
7.87
Laurentia Global Fund
12.12
InnoFusion Asia Multi-Strategy Fund
7.78
Blue Sky SRA Alliance Fund - IS 16Q
11.10
Rohatyn Group Asia Opportunity Fund
7.64
GAM Star Keynes Quantitative Strategies - USD (Acc)
10.98
UG Greater China Multi-Strategy Fund
7.05
Macro
Multi-Strategy
Relative Value
AM Capital Opportunity Fund I LLC
10.59
Relative Value Plus
3.39
Capula Global Relative Value Fund Share Class A - USD
3.35
Sector Healthcare Fund - Class A USD
2.50
SPM Core
1.97
CFB Convertibles Fund PLC - Thailand Sub Fund
1.60
Relative Value Conservative
1.34
III Credit Opportunities Fund LP
1.32
Gabelli International Ltd
1.26
Athena UI Fund - I Class
1.11
*Based on 37.99% of funds which have reported March 2015 returns as at 15 April 2015.
**For funds with a track record of at least 3 months as at end-March 2015
28
ISLAMIC FUNDS TOP 10 TABLES
March 2015 Returns (%)*
3-Month Returns (%)
CIMB Islamic Greater China Equity Fund
6.68
15.15
Public Asia Ittikal Fund
3.38
10.92
CIMB Islamic Asia Pacific Equity Fund - MYR
2.84
10.26
PB Islamic Asia Equity Fund
2.72
Public Islamic Asia Tactical Allocation Fund (PIATAF)
9.76
2.71
9.75
PB Islamic Asia Strategic Sector Fund
2.42
9.18
Public China Ittikal Fund
2.30
9.16
Public Islamic Asia Dividend Fund
2.21
QInvest JOHCM Sharia'a Fund
8.98
1.79
7.97
Public Islamic Select Treasures Fund
1.73
CIMB Islamic Equity Fund
7.84
2015 YTD Returns (%)
2014 Returns (%)
15.15
JS Islamic Fund
46.97
10.92
Taurus Ethical Fund B
42.65
10.26
Meezan Tahaffuz Pension Fund - Equity Sub Fund
32.03
9.76
Islamic Certificate on the LLB Top 20 Middle East TR Index

(EUR)
29.92
9.75
Al-Ameen Shariah Stock Fund
29.71
9.18
CIMB Principal Islamic Equity Growth Syariah
29.54
9.16
GCC Al-Raed Fund
27.65
8.98
Al-Beit Al-Mali Fund
26.76
7.97
BNP Paribas Pesona Amanah
23.86
CIMB Islamic Equity Fund
7.84
Shariah Benchmark Exchange Traded Scheme (Shariah BeES)
22.39
Annualised Returns (%)**
Annualised Standard Deviation**
Alkhair Capital Istanbul Fund
20.81
Boubyan KWD Money Market Fund
0.07
Meezan Tahaffuz Pension Fund - Equity Sub Fund
17.67
Public Islamic Money Market Fund
0.13
WSF Global Equity Fund - USD I
14.85
PB Islamic Cash Management Fund
0.14
Public Islamic Select Enterprises Fund
14.50
CIMB Islamic Money Market Fund
0.18
Public Islamic Opportunites Fund
13.75
CIMB Islamic Deposit Fund
0.18
Alkhair Capital Index Fund
13.58
PB Islamic Cash Plus Fund
0.21
QInvest Edgewood Sharia'a Fund
13.04
Emirates Islamic Money Market Fund Limited Institutional

Share Class I USD
0.26
JS Islamic Fund
12.56
Watani USD Money Market Fund
0.34
Public Islamic Dividend Fund
11.47
Al Rajhi Commodity Mudarabah Fund - USD
0.47
Public Islamic Equity Fund
11.40
Watani KD Money Market Fund
0.54
Meezan Tahaffuz Pension Fund - Money Market Sub Fund
9.00
Meezan Tahaffuz Pension Fund - Debt Sub Fund
15.25
Meezan Tahaffuz Pension Fund - Debt Sub Fund
5.16
Public Islamic Income Fund
4.14
Public Islamic Money Market Fund
4.85
Public Islamic Bond Fund
3.33
PB Islamic Cash Management Fund
3.86
PB Islamic Bond Fund
3.32
Al Rajhi Commodity Mudarabah Fund - USD
2.36
Public Islamic Select Enterprises Fund
2.71
PB Islamic Cash Plus Fund
2.24
Public Islamic Select Bond Fund
2.49
PB Islamic Bond Fund
1.90
QInvest Edgewood Sharia'a Fund
2.07
Public Islamic Income Fund
1.85
WSF Global Equity Fund - USD I
1.93
Public Islamic Bond Fund
1.79
Alkhair Capital Istanbul Fund
1.88
Public Islamic Select Bond Fund
1.63
Altaira Funds - Ethical Global High Dividend Fund (I)
1.65
Sharpe Ratio**
Sortino Ratio**
** For funds with a track record of at least 12 months as at end-March 2015
29
EUREKAHEDGE REGION/STRATEGY INDEX RETURN MATRIX
Arbitrage
CTA/managed
futures
Distressed debt
Event driven
Fixed income
Long/short
Macro
equities
Multi-strategy
Relative value
Insurance-linked
securities
All strategies
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
Mar
2015 YTD
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
2015
Returns
(0.04)
2.76
1.24
2.80
3.55
5.03
(0.09)
0.93
1.14
2.72
2.53
4.12
(0.89)
1.88
1.22
2.86
11.76
13.07
(1.22)
0.20
1.73
4.24
4.10
6.24
2.08
4.55
(0.23)
2.80
1.24
2.80
3.25
4.57
0.14
1.19
1.89
4.00
2.82
4.50
(0.89)
1.88
1.77
3.72
0.82
4.06
0.72
3.98
Emerging markets
2.22
2.34
(0.64)
2.52
4.90
8.44
(0.10)
0.67
0.57
2.19
1.02
2.40
1.77
3.56
(0.89)
3.81
0.82
2.41
Europe
0.37
0.82
2.27
2.65
0.34
4.87
0.61
2.65
1.08
5.18
0.85
0.53
1.14
4.41
0.26
(1.26)
0.98
4.21
9.94
9.76
Asia
Asia ex Japan
Asia inc Japan
Australia / New Zealand
0.46
2.67
Greater China
3.65
5.25
India
3.46
10.47
Japan
4.74
6.62
(0.79)
0.05
0.06
0.13
0.36
1.38
0.84
2.06
0.23
2.06
2.07
1.07
0.24
0.07
(2.62)
(3.43)
1.07
0.40
1.47
0.19
1.49
0.91
4.85
6.31
3.21
9.47
0.17
0.73
0.49
2.30
0.18
1.12
5.35
(1.46)
2.69
1.34
3.49
1.52
3.36
0.70
0.73
(9.73)
(0.26)
(0.04)
(0.12)
0.79
(1.90)
(4.47)
0.45
1.61
4.07
2.01
3.97
1.49
2.33
3.21
0.95
3.22
0.68
2.70
0.78
3.05
Korea
North America
(0.11)
1.28
1.12
3.62
0.36
0.28
Latin America
Latin America (Offshore)
Latin America (Onshore)
All Regions
(0.02)
1.56
1.28
4.97
0.62
1.21
0.71
2.70
0.81
0.27
1.94
1.48
0.12
0.76
Disclaimer
The contents of this Report are for information purposes only. The information contained in the Report (the Information) is based entirely on information and data received from the relevant subjects and from other third party sources
unless otherwise specified. Eurekahedge Pte Ltd has not verified the factual accuracy, assumptions, calculations or completeness of the Information. Accordingly, Eurekahedge makes no representation or warranty as to the accuracy or
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APRIL 2015

MICA (P) 014/07/2014

EUREKAHEDGE ASIAN HEDGE

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

Key highlights for March 2015:

THE EUREKAHEDGE REPORT APRIL 2015

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

THE EUREKAHEDGE REPORT APRIL 2015

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

Figure 3: 2015 year-to-date asset flows by geographic mandate

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

Figure 5: 2015 year-to-date asset flow by strategy employed

THE EUREKAHEDGE REPORT APRIL 2015

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

THE EUREKAHEDGE REPORT APRIL 2015

ASSET FLOWS UPDATE FOR THE MONTH OF MARCH 2015

Figure 7: Net asset flows by fund size

Net assetflows (US$billion)

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

Mizuho-Eurekahedge Asset Weighted Index

Figure 3b: Mizuho-Eurekahedge Indices

MSCI EM Latin America Index IMI (USD)

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

Figure 5: 2015 year-to-date returns across strategies

Multistrategy Relativevalue EHHedgeFund

Arbitrage and relative value

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

Figure 6b: Arbitrage and relative value

Long/short equities and fixed income

MSCI EM Latin America Index IMI (Local)

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

Figure 7b: Long/short equities and fixed income

Event driven and distressed debt

Figure 8b: Event driven and distressed debt

Dealogic M&A Statshot 03-Feb-2015

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

CTA/managed futures and macro

Figure 9b: CTA/managed futures and macro

Multi-strategy and insurance-linked securities

THE EUREKAHEDGE REPORT APRIL 2015

PERFORMANCE COMMENTARY FOR THE MONTH OF MARCH 2015

Figure 10a: Multi-strategy and insurance linked securities

Figure 10b: Multi-strategy and insurance linked securities

THE EUREKAHEDGE REPORT APRIL 2015

2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS

THE EUREKAHEDGE REPORT APRIL 2015

2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS

Industry composition and growth trends

Launches and closures

2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS

THE EUREKAHEDGE REPORT APRIL 2015

2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS

Average performance fees (%)

Average management fees (%)

THE EUREKAHEDGE REPORT APRIL 2015

2014 OVERVIEW: KEY TRENDS IN ASIAN HEDGE FUNDS

THE EUREKAHEDGE REPORT APRIL 2015