GlobalBriefing

HedgeFund
Intelligence

Volume 3 Issue 10 August 2010 A HedgeFund Intelligence publication

HEDGE FUND INDUSTRY GLOBAL NEWS ROUND-UP • RESEARCH • ABSOLUTE UCITS • DATA

Funds still lead markets for the year to date

GLOBAL SUMMARY
GLOBAL INDICES (EST)
Medians Means Following two very difficult months, July equity markets strengthened
Strategy Jul-10 YTD 10 Jul-10 YTD 10 after concerns over a stagnant recovery gave way to renewed optimism.
Equity 1.56% -0.19% 1.88% 0.56%
Despite most leading bourses surging over 5%, equity hedge funds
Macro -0.10% 1.77% -0.47% 0.68%
Managed Futures -0.69% -0.33% -0.34% -0.25%
underperformed, having been cautious in recent months, with the
Event Driven 1.75% 2.60% 2.18% 2.45% HedgeFund Intelligence Global – Equity Index returning an estimated
Emerging Market Debt 1.47% 5.11% 1.43% 6.69% 1.56% in July, much lower than the MSCI The World Index (up 8.11%).
Emerging Market Equity 2.47% -1.18% 2.84% -0.08% Despite this, equity hedge funds are still ahead of underlying markets on a
Global UCITS 0.57% 0.47% 1.45% -0.34%
year-to-date basis, performing flat which compares favourably to the FTSE
HFI Global Composite 0.95% 1.46% 1.32% 1.39%
100 (-2.86%), S&P 500 (-1.21%), China Shanghai Composite Index (-19.52%),
Nikkei 225 (-9.57%) and MSCI The World Index – Net (-2.53%) .
GLOBAL COMPOSITE MEDIAN INDICES While the slowdown in Chinese economic activity has worried

% 350 investors, there was renewed confidence in the Asia-Pacific region with
rising expectation of policy easing and a belief of future growth in
300
manufacturing. Chinese equity hedge funds were the second highest
250
performers in the region, up 3.07%, just behind Australian equity
200 hedge funds, which were the highest performers globally, up 4.20%.
150 Investor sentiment towards Europe improved after successful
100 Eurozone bank stress tests, clarity on Basel III, successful bond auctions
in Greece and Spain, as well as encouraging economic data from the
50
region. European hedge funds had one of the best months this year,
0
with the EuroHedge Composite Index up 0.95% in July.
-50 The US seemed more sluggish in July after a round of subdued
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economic data and growing concerns over its rising fiscal problems.
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However, managers performed well in July with the Absolute Return

Composite Index matching its European counterpart on the month but
MSCI World Index - Net still ahead at 2.22% for the year so far.

HedgeFund Intelligence Global Index - Macro

HedgeFund Intelligence Global Index - Managed Futures CONTENTS

HedgeFund Intelligence Global Index - Event Driven
HedgeFund Intelligence Global Index - Equity
HedgeFund Intelligence Global Index - Emerging Market Equity
HedgeFund Intelligence Global Index - Emerging Market Debt
1 Global summary
3 The Americas summary Risk appetite returns despite the uncertainty
4 Europe summary UK leads in Europe as equities rebound
5 Asia-Pacific summary Japan lags as Asia-Pacific markets rally
6 Funds of funds summary Global macro currency figures disappoint

HedgeFund Intelligence Global Index - Composite

8 Absolute UCITS Latest UCITS III developments
9 Research European launches pick up in H1
11 Data Positive results distribution recovers in July
For more information please contact: Damian Alexander
email: dalexander@hedgefundintelligence.com tel: +44 (0)20 7779 7361 12 Latest weekly news

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx

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Covering the single manager hedge
fund industry in the Americas

Risk appetite returns despite the uncertainty

ABSOLUTE RETURN INDICES (EST) MARKET EVENTS
Medians Means
Strategy Jul-10 YTD 10 Jul-10 YTD 10 • Stocks display highest monthly gain in a year
Mixed Arbitrage Index 1.11% 1.66% 1.95% 2.71%
Commodities Index -1.40% -2.07% -1.44% -1.70%
• Bernanke describes economic outlook as ‘unusually uncertain’
Convertible & Equity Arbitrage Index
Credit Index
1.28%
1.20%
3.66%
6.41%
1.41%
1.83%
4.14%
8.23%
• Consumer price index rises by 0.3%
Distressed Index 0.77% 5.48% 1.22% 6.73% • New home sales rebound after June’s record low
Event Driven Index 2.10% 4.38% 2.31% 3.40%
Fixed Income Index 0.95% 5.38% 1.03% 5.79% • Concerns remain over labour market
Global Equity Index 1.81% -0.04% 2.04% 0.25%
Latin American Debt Index 1.22% 3.09% 1.62% 3.23%
Latin American Equity Index 3.74% 3.58% 4.37% 4.02%
Macro Index 0.00% 1.93% -0.61% 0.49%
Managed Futures Index -0.49% -0.11% -0.03% -0.03%
Mortgage Backed Securities Index 0.31% 5.80% 0.53% 7.20% HEDGE FUND STRATEGIES
Multi-Strategy Index 0.52% 2.36% 0.62% 1.17%
Technology Index 1.38% 1.79% 2.43% 3.73% Equities Equity funds were up in July with US, Global and Tech-
U.S. Equity Index 1.62% 0.13% 2.21% 2.39% nolgy funds posting estimated returns of 1.62%, 1.81% and 1.38%
Absolute Return Composite Index 0.95% 2.22% 1.27% 2.07%
respectively. The S&P 500 Index was up 6.88%, its best monthly gain
since June 2009, as growing macro concerns drove equity markets
ABSOLUTE RETURN MEDIAN INDICES VS and pressured stocks. Funds with a low exposure in July, following
MSCI WORLD INDEX AND S&P 500 the market’s turbulence in June, were not positioned to benefit from
the global rally in the market.
% 300

Distressed Funds Hedge funds running distressed strategies

250
performed relatively well in July with an estimated gain of 0.77%
200 for the month. Managers that performed best within this space
achieved gains through long positions on equity and credit, while
150 those with market shorts suffered somewhat. Some managers
were able to take advantage of the market rally to reduce their
100 exposure.

50
Commodities/CTA Commodity funds and CTAs both posted
estimated losses of -1.40% and -0.49% respectively. Negative
0
contributions within this space came as markets were caught
off guard by Russia’s worst ever drought and the most signif i-
-50
cant rise in wheat prices since 1973. As prices appear to be on
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the rise, the agricultural sector holds much interest for

investors.
S&P 500

MSCI World Macro Macro funds had an uneventful month during July,
Absolute Return Composite Index remaining flat with an estimated median of 0.00%. Some funds
within this space avoided losses with the use of tactical risk overlays
Absolute Return Global Equity
in futures. Managers focused on the positives reflected by the US
Absolute Return U.S. Equity earnings season as the majority of companies either met or exceeded
expectations.

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Covering the single manager
hedge fund industry in Europe

UK leads in Europe as equities rebound

EUROHEDGE INDICES (EST) MARKET EVENTS
Medians Means • Santander buys 173 SEB branches in Germany
Strategy Jul-10 YTD-10 Jul-10 YTD-10
European Equity USD 1.61% -0.63% 1.97% 0.05% • Portugal and Ireland see credit rating downgraded
European Equity GBP 2.29% -0.48% 2.96% 0.61% • Hungary receives an emergency bailout
European Equity EUR 1.55% 0.38% 1.76% 1.18%
Macro USD -0.03% 1.73% -0.64% 1.30%
• Seven out of 91 banks in Europe fail the European stress test
Fixed Income USD -0.13% 4.45% -0.32% 4.64%
Global Equity USD 1.98% -1.66% 1.88% -2.57%
Managed Futures USD -0.80% 1.04% -1.30% -0.34% HEDGE FUND STRATEGIES
Credit USD 0.08% 3.99% 0.62% 4.21%
Currency 0.90% 2.85% 2.03% 5.45% European Equity European markets rebounded during July as better
Event Driven USD 1.50% 0.11% 2.66% 1.27% corporate results and the release of the European bank stress test results
Mixed Arbitrage & Multi Strategy USD 0.88% 2.69% 3.09% 5.83% increased investor confidence. All European markets were up during July,
Equity Market Neutral &
with the UK leading the way. The FTSE gained 6.94% for the month,
Quantitative Strategies USD -0.10% 2.21% 0.24% 2.00%
Convertible & Equity Arbitrage USD 2.29% 4.22% 2.39% 5.72% while the French CAC and German DAX saw increases of 5.82% and
Emerging Market Debt USD 1.23% 4.87% 0.91% 4.00% 3.06% – the MSCI Europe posted a gain of 5.86% for July. European long/
Emerging Market Equity USD 1.72% 0.35% 2.57% 0.01%
short hedge funds remained cautious during the month with their short
UCITS European Equity 1.01% 0.33% 1.41% 1.14%
EuroHedge Composite 0.95% 0.99% 1.24% 1.01% books affecting performance. The EuroHedge European Equity index
posted an estimated median gain of 1.55% for July and is now in the black
for the year with a return of 38 basis points.
EUROHEDGE MEDIAN INDICES VS
MSCI EUROPE Managed Futures While Europe saw better economic data within the
region, the US and China proved to be a little more shaky, with the
% 200
Federal Reserve in the US lowering its growth outlook and China
experiencing a slowdown. As global equities rallied, long positions helped
150 performance as losses were incurred from short positions in oil and
natural gas as prices rose based on weather conditions in the US. The
EuroHedge Managed Futures index posted an estimated loss of 80 basis
100
points though is still positive for the year at 1.04%.

50 Fixed Income As investors moved away from safe haven assets, the
EuroHedge fixed income index posted a small median loss of 13 basis
0 points for July – its first negative monthly return since December 2008.
As concerns over the European economy decreased, swap trading
increased as the market saw an increase in new issuances. With the rise in
-50
new issuance, swap rates rose higher than treasury yields, as the Federal
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in US Treasuries. The EuroHedge Fixed Income index is still up for the

MSCI Europe - Net year, with a gain of 4.45%.
EuroHedge Composite Index
EuroHedge European Long/Short Equity EUR Index Event Driven After two consecutive months of negative performance,
EuroHedge Managed Futures USD Index the EuroHedge Event Driven index is once again positive for the year, up
EuroHedge Fixed Income USD Index 0.11% for the first seven months of the year. Volatility in the market
EuroHedge Macro USD Index decreased, while in Europe M&A activity picked up especially in the UK.
EuroHedge Global Equity USD Index With credit spreads tightening and the equity rally, the index posted an
estimated median gain of 1.5% for July – its highest return for 12 months.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx August 2010 4

Covering the single manager hedge
fund industry in the Asia-Pacific

Japan lags as Asia-Pacific markets rally

ASIAHEDGE INDICES (EST) MARKET EVENTS
Medians Means
Strategy Jul-10 YTD Jul-10 YTD • China stops tightening as property shows signs of slowing
Asia including Japan USD 1.52% -1.83% 2.07% -1.90%
Asia excluding Japan USD 2.75% -2.09% 3.37% -0.28% • Markets remain volatile over fears of a double dip global recession
Chinese Equity 3.07% -4.70% 3.50% -4.70%
Indian Equity 0.82% 4.21% 1.08% 6.34% • Employment data continues to improve in Australia
Japanese Equity USD
Japanese Equity JPY
0.23%
-0.34%
1.45%
1.55%
-0.39%
-0.75%
0.73%
0.15%
• China A-Shares come back strongly in July (≈10%)
Australian Equity AUD 4.20% -2.62% 4.11% -1.86%
AsiaHedge Composite 1.22% 0.77% 1.71% 0.49%
Asia excluding Japan Equity Asian markets rallied in July, as
confidence in China’s recovery grew and US Q2 earnings were better
EQUITY BENCHMARKS
than expected. The MSCI Pacific Ex-Japan gained a staggering 10.26% for
Benchmark index Jul-10 YTD
the month, but is still down 2.52% for the year-to-date. Asia excluding
MSCI Pacific Free Net 5.90% -0.48%
MSCI Pacific ex Japan 10.26% -2.52% Japan funds underperformed this benchmark by gaining an estimated
MSCI China 4.37% -2.03% 2.75% median return. Within the region, China was the best performer
China Shanghai Composite Index 9.97% -19.52% and Taiwan, which was pushed up by technology, came in second.
Sensex 0.95% 2.31%
TOPIX 0.97% -5.46%
Australian Long/Short Equity After falling for the last three months,
Nikkei 225 1.65% -9.57%
the Australian All Ordinaries gained 4.22% in July, driven by strong US
Australian All Ordinaries 4.22% -7.69%
Hang Seng 4.48% -3.85% data, improved sentiment in China and the positive results of banking
stress tests in Europe. Australian long/short equity is the best
performing strategy so far, with an estimated median return of 4.20%,
ASIAHEDGE MEDIAN INDICES VS but is still negative for the year, down 2.62%. Cyclical sectors such as
MSCI PACIFIC FREE financials, industrials, materials and energy were the best performers.
% 150
Defensive sectors lagged, including information technology, healthcare
and utilities.
120

Japanese Long/Short Equity The Japanese market was weak in July

90
as the strong yen caused the country’s exporters to suffer. The yen
tested a ten year high and the TOPIX underperformed the region, by
60
only gaining 0.97% for the month. Japanese long/short equity (JPY
30 denominated) was the only strategy down for the month, posting an
estimated -0.34% median return. Political uncertainty also affected the
0 market, as the ruling Democratic Party of Japan failed to gain a
majority in the upper house election.
-30
Single Country Although India lagged the region in July with the
-60 Sensex up only 0.95%, India is the only regional market up for the
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year so far, up 2.31%. Indian equity funds just underperformed their

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MSCI Pacific Free Net benchmark at 0.82%, but are outperforming for the year to date, up
AsiaHedge Composite Index 4.21%. The MSCI China was up 4.37% for the same period, following

AsiaHedge Japanese Equity Index USD expectations of policy changes, growth in manufacturing and

AsiaHedge Asia including Japan Index USD

increased confidence in the region. Chinese long/short equity funds
also performed well in July, with an estimated 3.07% median return
AsiaHedge Asia excluding Japan Index USD
so far.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx August 2010 5

Covering the global
fund of funds industry

Global macro currency figures disappoint

INVESTHEDGE INDICES HEDGE FUND STRATEGIES
Medians Means
Best performing strategy
Strategy Jul-10 YTD-10 Jul-10 YTD-10 The InvestHedge Global Equity index was one of the top performing
Arbitrage USD Index 0.40% 1.12% 0.22% 0.35% strategies last month, up 1.15% despite reporting estimated losses of
Asian Pacific Fund of Funds Index 1.20% -2.44% 1.20% -2.70% 0.92% year to date and underperforming the MCSI World Index quite
Asset Based Lending Index 0.14% 1.06% 0.14% 1.79%
considerably (up 8.11%). Equity markets advanced in July with
Commodities Index 1.11% -4.71% 0.37% -4.99%
improved global economic data. The US markets responded well to
Distressed Index 0.56% 2.27% 0.47% 1.93%
improved housing data followed by strong Q2 earnings and the
Emerging Managers Index 0.20% -0.76% 0.45% -1.12%
European bank stress test results look to have reassured the markets
Emerging Markets Hedge USD Index 1.92% 0.87% 2.02% 0.28%
with only seven of the 91 banks failing.
European Equity EUR Index 0.70% -1.49% 0.72% -2.05%
European Multi Strategy EUR Index 1.40% 0.99% 1.11% -0.57%
Fixed Income USD Index 1.04% 3.86% 0.94% 3.53% Worst performing strategy
Global Equity USD Index 1.15% -0.92% 1.41% -0.77% The InvestHedge Global Macro Currency Index was one of the worst
Global Macro Currency USD Index -0.45% -0.95% -0.41% -0.46% performing strategies last month, with the mean down 0.41% and the
Global Multi Strategy EUR Index 0.42% -0.74% 0.41% -0.99% median down a further 0.45%, reporting year-to-date losses of 0.46%
Global Multi Strategy USD Index 0.60% -0.20% 0.75% -0.09% and 0.95% respectively. Global macro managers experienced a drastic
Leveraged Global Multi-Strategy USD Index 0.46% 0.53% 0.63% 0.99% drop in volatility and a strong rebound of the more risky assets last
US Equity Index 1.18% -0.21% 1.29% 0.54%
month, resulting in many funds reporting losses. With funds
InvestHedge Composite Index 0.58% -0.38% 0.61% -0.61%
continuing to report, the full results are subject to change in the
coming weeks.
INVESTHEDGE MEDIAN INDICES VS MSCI WORLD
120 New funds
%
New York-based firm StoneWater Capital, with $135 million under
100 management has recently launched the StoneWater Capital
Opportunities fund, with initial assets of $16 million, to answer a
80
client-driven need for a multi-strategy, multi-manager global
emerging markets fund. The fund currently has four Asian managers:
60
one volatility player; one even-driven manager; a distressed debt
hedge fund; and a long/short equity manager, with plans to add a
40
pan-emerging markets manager in coming months. The aim of the
20 fund is to have a concentrated portfolio of between 15-20 managers
and the fund will be run with no leverage.
0
Mandates
-20 The number of hedge fund searches continued to rise this summer
with InvestHedge now tracking 16 new searches totaling $6 billion.
-40
Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 This is on top of searches previously reported this year totaling more
than $11 billion. Most of this groundswell has centered on single-
manager hedge funds, with $224 million in new allocations being
MSCI The World Index – Net
InvestHedge Leveraged Global Multi-Strategy USD made in July and early August. Popular strategies continue to be
InvestHedge Global Multi-Strategy USD distressed and long/short equities. Public pension funds are fertilising
InvestHedge Global Equity USD their hedge fund portfolios and account for 10 new searches. The
InvestHedge European Multi-Strategy EUR
majority of these RFPs are for single manager hedge funds, but fund
InvestHedge European Equity EUR
InvestHedge Composite of funds firms such as Rock Creek, Permal and Crestline have also
been hired recently by US public pensions.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx August 2010 6

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 Absolute
UCITS

Latest UCITS III developments

Single-manager UCITS III news
JULY UCITS PERFORMANCE INDICES • Jabre Capital Partners is gearing up to manage a second fund in an
Medians Means
Strategy Jul-10 YTD -10 Jul-10 YTD -10
onshore UCITS III format. The Jabcap (Lux) Global Balanced UCITS
EuroHedge UCITS European Equity Index 1.01% 0.33% 1.41% 1.14% Fund, a Luxembourg-based structure, will be managed in a similar
EuroHedge European Equity EUR Index 1.55% 0.38% 1.76% 1.18% way to the firm’s existing Jabcap Global Balanced offshore fund,
HedgeFund Intelligence Global Index - UCITS 0.57% 0.47% 1.45% -0.34% which takes an absolute return approach in global equities.
HedgeFund Intelligence Global Index - Composite 0.95% 1.46% 1.32% 1.39%

• Martin Currie is launching a UCITS III-compliant product based on

EQUITY BENCHMARKS
the firm’s ARF-Japan Fund, a long/short equity strategy launched in
Benchmark index Jul-10 YTD -10
2000. Japan Absolute Alpha will be managed by John-Paul Temperley
MSCI Europe - Net 5.86% -1.23%
FTSE 100 (London) 6.94% -2.86%
and Keith Donaldson.
DAX (Frankfurt) 3.06% 3.20%
• Thayer Brook Partners is planning a UCITS III version of the Thayer
Brook Global Diversified Fund, which is expected to launch later this
UCITS INDICES VS EUROHEDGE EUROPEAN year. The strategy will be on Deutsche Bank’s db Select platform.
EQUITY AND MSCI EUROPE
• GWM Institutional, a Geneva-based family office, has launched 7H
%
Absolute, a UCITS III hedge fund that aims to grow to €500 million in
30
the next few years. The Luxembourg-domiciled fund, a European equity
SICAV fund, is managed by Simone Chelini and Pietropaulo Rinaldi.
20

• Certitude Global Investments is offering the MW GeveKal Asian

10
Opportunities UCITS Fund to Australian high-net-worth and institu-
tional investors through the launch of its Certitude Asian Opportuni-
ties Fund. This is a long-only absolute return strategy managed by
0 Marshall Wace GaveKal Asia.

-10
Multi-manager UCITS III News
• Credit Suisse has launched a UCITS III compliant multi-strategy fund of
-20
funds, with some $130 million in day one investment. The Credit Suisse
Solutions (Lux) Prima Multi-Strategy fund will invest in 20 underlying
-30 managers, at least half of which are run by the same mangers in the
SAPIC 98 Fund, the bank’s flagship global multi-strategy fund.

-40
• Gottex Fund Management has launched a UCITS III fund of funds
product in Luxembourg in July, and is now in the process of passport-
-50 ing it to the rest of Europe.
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EuroHedge UCITS European Equity Index (Median)
EuroHedge European Equity EUR Index (Median)
HedgeFund Intelligence Global Index – UCITS
HedgeFund Intelligence Global Index - Composite
MSCI Europe - Net
Industry News
• UCITS funds posted net outflows of €23 billion in May according to the
European Fund and Asset Management Association (EFAMA). For the first
time since March 2009, long-term UCITS funds – those excluding money
market funds – registered net outflows of €8 billion. Despite this, the funds
have seen net inflows of €108 billion for the first five months of 2010.

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx August 2010 8

 Research

European launches pick up in H1

The pace of new hedge fund launches in peak of $15.5 billion raised in new fund
Europe is continuing to pick up from its
New European hedge funds launches in the first half of 2007 – when a
H1 2000-H1 2010
lowest point in the first half of 2009, but is staggering 189 new hedge funds launched
20 200
still running at historically low levels. Assets raised $bn in the first six months of the year alone.
The bi-annual new fund survey conduct- Number of funds And new fund activity in Europe is
15 150
Assets raised $bn

Number of funds
ed by the EuroHedge data and research lagging that in either Asia or the US, where
team shows that at least 58 new hedge 10 100
the rate of recovery has been more rapid
funds launched in the first six months of – reflecting the much lower confidence
this year, raising a combined $3.75 billion 5 50 that investors currently have in the
as at the end of June. investment prospects in the European area
That compares with 47 funds raising a 0 0 compared to other parts of the world.
00

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mere $2.1 billion in the first half of last This is partly as a result of the extreme

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year – which was the lowest first-half Source: EuroHedge Database
figure since 2001– and represents a rise of
80% in terms of the assets raised, although New European hedge funds,
the increase in the number of funds is H1 2010: by strategy
much lower at less than 25%. Strategy
The improvement is more marked, European Equity
Global Equity
however, if one takes into account the Macro
number of new onshore hedge fund Mixed Arbitrage & Multi-strategy
Commodities
strategies that have been launched so far CTA
this year in Europe under the regulated Emerging Market Equity
Event Driven
UCITS framework. Fixed Income
The survey shows that new UCITS hedge Equity Market Neutral & Quant Strategies
Convertible Arbitrage
fund launches accounted for a further $3.1
Credit
billion – almost as much again as was Asian Equity
raised in traditional hedge fund launches. US Equity
Volatility Trading
For the purposes of this survey, we Total
Source: EuroHedge Database
include only those new UCITS funds that
were launched by existing hedge fund
management companies; funds that are
New European UCITS hedge funds,
replications or versions of existing hedge H1 2010: by strategy
fund strategies; or other UCITS funds Strategy
launched by non-hedge fund firms that European Equity
Convertible Arbitrage
genuinely use hedge fund strategies and Equity Market Neutral & Quant strategies
techniques. Macro
Mixed Arbitrage & Multi-strategy
Taken together, the $6.85 billion raised
Emerging Market Debt
in new hedge and UCITS hedge funds Emerging Market Equity
Global Equity
points to a much more healthy bounceback
US Equity
in overall new launch activity in Europe – Credit
taking the first-half figure closer to the Fixed Income
Asian Equity
$8.2 billion in assets that was raised in the Total
first half of 2003. Source: EuroHedge Database
However, it is still a very far cry from the
No of funds Assets ($m)
12 703
10 696
5 617
2 564
5 282
7 271
6 208
2 173
1 100
3 82
1 30
1 11
1 10
1 3
1 3
58 3,752
No of funds Assets ($m)
19 1,153
1 1,013
5 528
2 147
4 127
1 38
2 36
1 28
1 20
1 14
1 13
1 11
39 3,129
volatility seen in European financial
markets since the start of the year. But it
also reflects the intense uncertainty
surrounding the EU’s AIFM directive and
its likely impact on the shape of the hedge
fund industry itself in Europe.
In recent months Europe has been at the
epicentre of the renewed tremors shaking
the financial system – with fears over a
possible Eurozone sovereign debt crash,
over the health of the European banking
system and over the prospects for economic
recovery in Europe leading to outbreaks of
intense volatility in asset markets.
This has inevitably had an adverse
impact on both managers and investors
– with neither side wishing to commit
themselves to new ventures at a time of
such heightened uncertainty, volatility and
political intervention.
Despite the difficult asset-raising and
general market environments, there have
been some significant new starts this year
– and there are more to come in the second
half, with a number of potentially big new
launches on the way.
For the full EuroHedge article visit:
http://www.hedgefundintelligence.com/Arti-
cle/2635908/EuroHedge-Industry-Analysis/
New-hedge-fund-launches-start-to-pick-up-pace-
in-first-half-of-2010.html

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 The world’s leading
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and research, subscribers can benefit from a unique
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Absolute
UCITS
 Data
Positive results distribution recovers in July
NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING JULY
The HFI research and data team added 57 funds to the
database during July. On the single manager side, EuroHedge AsiaHedge Absolute Return InvestHedge
EuroHedge saw 30 new funds added and AsiaHedge and 120

Number of funds added to

Absolute Return added six each. On the fund of hedge 100
funds side, InvestHedge added 15 funds to the database 80
during the month, with over half of these funds being 60

HFI database
based in the US. Six of these funds were launched
40
within the last couple of months. On the single
20
manager side, nearly 60% of new funds added to the
0
database were launched within the first half of 2010. Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

NUMBER OF FUNDS LIQUIDATED DURING JULY*

In total, the HedgeFund Intelligence research EuroHedge AsiaHedge Absolute Return InvestHedge
and data team liquidated 40 funds in the 80
Number of funds liquidated

database during July. EuroHedge and In- 70

vestHedge saw the greatest number of liquida- 60
50
tions, 18 and 14 respectively. AsiaHedge and
40
Absolute Return both liquidated 4 funds. On the 30
single manager side, 65% of the funds noted as 20
closed in our database during July liquidated in 10
0
the last three months. Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
* de-duped to exclude multiple share classes

DISTRIBUTION OF PERFORMANCE %
Positive Negative
July seemed to be a much better month for hedge 100
funds following on from two difficult months,
80
which saw the global composite down at 2.12% and
60
0.39% respectively for May and June. For July, over
40
70% of the funds which have reported to the
HedgeFund Intelligence database so far are posting 20

positive performance with the HFI Global Compos- 0

09

09
09

09
9

-10
09

-10
10

0
10

10
9

0
t-0
l-0

r-1

ite posting an estimated median gain of 0.95% for

l-1
b-
n-

n-
g-

v-
p-

c-
n-

ay
ar

Ap

Ju
Oc

No

Fe
De
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the month.

GlobalBriefing: Data
If you have a fund which you wish to be included please contact the following:
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 Latest WEEKLY news

Shumway equity fund PSAM launches first Merrion considers new Asian Maryland issues RFI for
stung by long positions UCITS fund on Morgan UCITS vehicle emerging managers
Like other equity strategies, Stanley platform Merrion Investment Managers, The Maryland State Retirement
Shumway Capital Partners New York-based alternative the Dublin-based asset and Pension System is
equity-focused SCP Atlantic Fund investment manager, management group, may considering the creation of an
was stung both by down markets P Schoenfeld Asset Manage- launch an Asian or emerging emerging manager fund of
in May and June and then again ment, is running the first markets UCITS hedge fund to hedge funds programme and
in July. UCITS fund on Morgan complement its European has issued an RFI to retain one
Stanley’s platform FundLogic. fund. or more managers.
Highfields co-founder
Richard Grubman to retire Hufton and Wong to replace Northern Trust capitalises Former UVIMCO exec to lead
Richard Grubman, famous on Dyson on SR Europe fund on growth in Asian asset new alternative business
Wall Street for having been Sloane Robinson has two new servicing space Bruce MacDonald, former
cursed out by Jeffrey Skilling on co-managers on its SR Europe Northern Trust, one of the director of asset allocation and
an earnings call, is retiring from long/short equity fund, following largest hedge funds and fund of risk analysis at the University
Highfields Capital Management, news that Rupert Dyson is funds administrators globally of Virginia Investment
the firm he co-founded in 1998. leaving the firm and taking a with $86 billion under Management Company
break from the industry. administration, is strengthening (UVIMCO), is one of three
Passport raises $30 million its Asia franchise by capitalising founding partners of Simple
from California pension Jabre launches new on the emerging opportunities Alternatives, a firm that plans
Passport Capital has won a $30 UCITS vehicle in the region’s asset servicing on offering a multi-manager,
million long/short equity Jabre Capital Partners, the space post-Madoff and the recent hedge equity alternative
mandate from California’s San investment firm headed by financial crisis. mutual fund in October.
Bernardino County Employees legendary convertible and
Retirement Association. equity manager Philippe Jabre, Martin Currie rolls out Japan Barclays Wealth beefs up
is gearing up to manage a UCITS fund hedge fund expertise
Cerberus shops new second fund in an onshore Martin Currie, the Edinburgh- Barclays Wealth, an
mortgage fund UCITS III format. based manager overseeing $1.2 investor in hedge funds
Cerberus Capital Management is billion, is launching a UCITS for its clients, has expanded
trying to entice investors with a GLG reports H1 losses III-compliant product based on its alternative investment
new mortgage hedge fund, GLG Partners has reported a GAAP the firm’s ARF-Japan Fund, a origination and distribution
Cerberus Mortgage net loss for the second quarter long/short equity strategy teams with a number of
Opportunities. ended June 30 of $74.6 million. launched in 2000. senior hires.

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Published by HedgeFund Intelligence, Nestor House, US/Europe James Barfield
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