GlobalBriefing

HedgeFund
Intelligence

Volume 3 Issue 11 September 2010 A HedgeFund Intelligence publication

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

Macro indicators fuel spread of anxiety

GLOBAL SUMMARY
GLOBAL INDICES (EST)
Medians Means August, unlike July, offered no respite for markets as bourses
Strategy Aug-10 YTD Aug-10 YTD around the world fell as investors sold equities for the safety of
Equity -0.80% -1.07% -0.87% -0.40%
treasuries and gold. Markets switched their focus from July’s
Macro 1.10% 3.07% 1.54% 2.38%
Managed Futures 2.01% 1.87% 2.98% 2.92%
strong micro results to discouraging macro indicators, which
Event Driven 0.13% 2.75% -0.51% 2.15% caused renewed anxiety over a sluggish recovery and possible
Emerging Market Debt 0.73% 5.90% 0.76% 7.54% double-dip recession.
Emerging Market Equity 0.14% -1.02% 0.24% 0.13% The US, which remains a core concern for investors, saw a
Global UCITS 0.13% 0.52% -0.10% -0.54%
steady flow of gloomy data with soft housing figures, poor retail
HFI Global Composite 0.29% 1.76% 0.27% 1.63%
sales and business sentiment – all of which point to a fragile
recovery. Europe, while appearing stable, had mixed data with
GLOBAL COMPOSITE MEDIAN INDICES a clear north/south divide still evident; China saw further

% 350 tightening in property and a slowing of growth, while Japan saw

its currency hit a 15-year high.
300
Despite a challenging month, hedge funds did what they do
250
best in August, with managers performing relatively better than
200 their underlying benchmarks in the drawdown. The Hedge Fund
150 Intelligence Composite was up 0.29% on the month, far better
100 than the MSCI World, which was down 3.73%, the S&P 500 (down
4.74%), FTSE 100 (down 0.62%), Nikkei (down 7.48%) and Hang
50
Seng (down -2.35%). Hedge funds are now up nearly 2% for the
0
year, while the MSCI World has fallen over 6%.
-50 Looking ahead, it seems markets will remain nervous and
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volatile until some macroeconomic clarity becomes evident, which

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hopefully shows the production lines in the East continue to grow,

and that any demand gap left by fading government support can
MSCI World Index - Net be picked up by businesses and households.

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
HedgeFund Intelligence Global Index - Composite
For more information please contact: Damian Alexander
email: dalexander@hedgefundintelligence.com tel: +44 (0)20 7779 7361
1 Global summary
3 The Americas summary Markets experience worst August in nine years
4 Europe summary Fears of a double-dip recession hit markets
5 Asia-Pacific summary Japan is worst-performing strategy in August
6 Funds of funds summary Mandates pick up as pension funds restructure
8 Absolute UCITS Latest UCITS III developments
9 Research H1 2010 Asia-Pacific launches show strength
11 Data Absolute UCITS proves a draw for database
12 Latest weekly news

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Covering the single manager hedge
fund industry in the Americas

Markets experience worst August in nine years

ABSOLUTE RETURN INDICES (EST) MARKET EVENTS
Medians Means
Strategy Aug-10 YTD Aug-10 YTD • Bernanke reveals Fed’s readiness to boost US economy
Mixed Arbitrage Index 1.12% 2.83% 1.46% 4.27%
Commodities Index 1.08% -0.90% 2.07% 0.67%
• Losses within housing sector impact on unemployment figures
Convertible & Equity Arbitrage Index
Credit Index
1.42%
0.61%
5.41%
7.06%
1.54%
1.03%
6.08%
8.76%
• Retail investors continue retreat from equity markets
Distressed Index 0.24% 6.44% 0.39% 7.12% • Department of Commerce downgrades expected US growth figures
Event Driven Index 0.00% 4.36% -0.83% 2.52%
Fixed Income Index 0.90% 6.26% 0.98% 6.59% • SEC promises stricter overview and enforcement against Wall Street
Global Equity Index 0.10% -0.03% -0.47% -0.34%
Latin American Debt Index 0.40% 3.70% 0.00% 3.75%
Latin American Equity Index 1.37% 4.26% 0.59% 4.43%
HEDGE FUND STRATEGIES
Macro Index 1.39% 3.45% 1.77% 2.62%
Equities Equity markets fell in August as weak macroeconomic data
Managed Futures Index 1.90% 1.97% 3.00% 3.17%
Mortgage Backed Securities Index 0.50% 6.39% 1.19% 8.59% reversed many of the gains made in July. Following the downward
Multi-Strategy Index 0.32% 2.76% 0.20% 1.59% revision of second-quarter GDP growth from 2.4% to 1.6%, investors
Technology Index -1.43% 0.81% 0.28% 4.04% grew more cautious at the economy’s sluggish rate of recovery and
U.S. Equity Index -1.77% -1.67% -1.69% 0.57% moved out of equities into fixed income. US and Global Equity funds
Absolute Return Composite Index 0.42% 2.70% 0.59% 2.71%
returned an estimated -1.77% and 0.10% respectively, while Tech
funds returned an estimated -1.43%. The S&P 500 Index ended the
ABSOLUTE RETURN MEDIAN INDICES VS month down -4.74%, its ninth reversal this year.
MSCI WORLD INDEX AND S&P 500
Credit The Absolute Return Credit Index returned an estimated 0.61%
% 300
in August, bringing the year to date to 7.06%. Managers capitalised on
some refinancing activity and gained the highest absolute returns during
250
the month through a number of positions across loans and bonds.
200 Gains were also made through short positions in the Retail and Media
industries. Managers within this strategy expect volatility to remain high.
150
Commodities/CTA Commodity-based funds and CTAs returned an
100 estimated 1.08% and 1.90% respectively. The decelerating rate of growth
allowed funds with long positions in government bond futures to perform
50
well. Crude oil and corn both proved to be profitable markets, with
managers taking advantage of the significant move within corn during
0
August. Some funds that performed well were able to do so by correctly
anticipating movement in the energies and currencies markets, while
-50
others benefited from the rally in US fixed-income futures.
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Macro Funds within the Macro space returned an estimated 1.39%

S&P 500
during August, those that remained cautious in their outlook perform-
MSCI World ing well despite the market’s reversal. Gains were made by managers

Absolute Return Composite Index through long positions in the Brazilian Real and Japanese Yen. However,
the positive correlation of currencies such as the Canadian and Australian
Absolute Return Global Equity
Dollar with equities led to those with long positions in these currencies
Absolute Return U.S. Equity suffering. As investors remain cautious, some managers plan to utilise
tactical trading as a way to profit from short-term market dislocations.

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Covering the single manager
hedge fund industry in Europe

Fears of a double-dip recession hit markets

EUROHEDGE INDICES (EST) MARKET EVENTS
Medians Means • German Bund yields at all-time low
Strategy Aug-10 YTD Aug-10 YTD
European Equity USD -0.07% -1.13% -0.33% -0.82%
• ECB calls for bids to drain €60.5bn from Eurozone money markets
European Equity GBP 0.16% -0.99% -0.51% -0.70% • UK job market slows to its lowest rate for 10 months in August
European Equity EUR 0.00% 0.00% -0.19% 0.74%
Macro USD 1.16% 3.08% 1.21% 2.59%
• Greece set to receive €9bn of EuroZone loans
Fixed Income USD 0.74% 5.54% 0.36% 5.98%
Global Equity USD -1.17% -2.79% -0.74% -3.06% HEDGE FUND STRATEGIES
Managed Futures USD 2.84% 3.83% 3.60% 3.28%
European Equity The rally in equities of July continued into the first
Credit USD 0.93% 6.55% 0.97% 6.48%
Currency 0.01% 2.63% -0.98% 3.78% week of August though, as weak economic data in the US was released,
Event Driven USD 0.77% 0.82% 0.48% 0.95% markets sold off as fears of a double-dip recession intensified. In
Mixed Arbitrage & Multi Strategy USD 0.04% 2.49% -0.21% 4.40% Europe, conflicting data continued to be released with Germany at one
Equity Market Neutral &
Quantitative Strategies USD -0.14% 2.26% -0.58% 1.25%
end of the spectrum reporting growth for Q2, while the outlook for
Convertible & Equity Arbitrage USD 1.33% 5.85% 0.49% 6.38% Greece and Ireland continued to remain bleak. European markets fell
Emerging Market Debt USD 0.65% 5.76% 0.57% 4.78% during August with the CAC, DAX and MSCI Europe at -4.18%, -3.62%
Emerging Market Equity USD -0.28% 0.84% -0.47% -0.18%
and -2.16% respectively. The UK managed to outperform its equity index
Absolute UCITS European Equity -0.38% -0.25% -0.38% 0.74%
EuroHedge Composite 0.28% 1.15% 0.23% 1.11% peers, down slightly at -0.62%. European hedge funds had a challenging
month with the EuroHedge European Equity Index EUR relatively flat
for the month and the year. Gains from long positions in pharmaceu-
EUROHEDGE MEDIAN INDICES VS
ticals were offset by long positions in financials and construction.
MSCI EUROPE
Managed Futures After three consecutive months of losses, the
% 200
EuroHedge Managed Futures Index posted an estimated median gain
of 2.84% for August. As investors moved away from risky assets, gains
150 came from fixed income and bonds – as the yield on German 10-year
governments bonds reached new lows. Losses were incurred from copper
prices which dropped in August due to poor US housing data, though
100
gains from long positions in wheat – which saw prices rise over weather
conditions and short positions in natural gas, helped offset perform-
50 ance as the index pushed its return for the year so far to 3.83%.

0 Convertible & Equity Arbitrage With only one down month in the last
20, the EuroHedge Convertible & Equity Arbitrage Index posted another
strong month for August up an estimated 1.33% for a yearly return of
-50
5.85% for 2010. As equities sold off, volatility increased. Convertible
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closed. Fixed income also outperformed, pushing credit markets higher.

MSCI Europe - Net
EuroHedge Composite Index Macro Fears rose during August over the economy, which pushed equity
EuroHedge European Long/Short Equity EUR Index markets lower and saw investors move to safe-haven assets such as gold.
EuroHedge Managed Futures USD Index Interest rates fell during the month, and the likelihood they will stay
EuroHedge Fixed Income USD Index low saw investors move to government bonds. Commodity prices fell
EuroHedge Macro USD Index in August, though gains from currency – long positions in Yen and
EuroHedge Global Equity USD Index short in Euro added to performance. The EuroHedge Macro Index posted
an estimated gain of 1.16% for August, returning 3.08% for the year so far.

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

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

Japan is worst-performing market in August

ASIAHEDGE INDICES (EST) MARKET EVENTS
Medians Means
Strategy Aug-10 YTD Aug-10 YTD • Yen surges to a 15-year high
Asia including Japan USD 0.62% -1.22% 0.33% -1.80% • Singapore government unveils measures to cool the property market
Asia excluding Japan USD
Chinese Equity
-0.42%
1.49%
-1.90%
-3.69%
-0.07%
1.06%
-0.32%
-3.93%
• Taiwan explores trade agreement with Singapore
Indian Equity 1.11% 5.08% 0.78% 7.05%
• China overtakes Japan to become world’s second-biggest economy
Japanese Equity USD -2.12% -0.80% -2.41% -1.79% • First hung parliament in Australia in 70 years
Japanese Equity JPY -2.61% -0.85% -3.16% -2.75% • Kan’s position as leader of the Democratic Party of Japan under threat
Australian Equity AUD -1.09% -4.07% -0.84% -2.91%
AsiaHedge Composite -0.09% 0.57% -0.35% 0.08%
HEDGE FUND STRATEGIES
Australian long/short equity August was a tough month as the
EQUITY BENCHMARKS reporting season and federal election outcome were the focus of the
Benchmark index Aug-10 YTD
month and the Australian All Ordinaries fell 1.52%. Despite falling
MSCI Pacific Free Net -2.17% -2.64%
MSCI Pacific ex-Japan -1.95% -4.42%
an estimated 1.09% in August, funds investing into the country
MSCI China -2.75% -4.72% outperformed this benchmark. Economically sensitive sectors
China Shanghai Composite Index 0.05% -19.48% including financials, materials and consumer discretionary fell for the
Sensex 0.58% 2.90% month, whereas defensive sectors like utilities and REITS gained.
TOPIX -5.25% -10.42%
Nikkei 225 -7.48% -16.33%
Japanese long/short equity The market was highly volatile in
Australian All Ordinaries -1.52% -9.09%
Hang Seng -2.35% -6.11% August and changed direction sharply every few days; the TOPIX and
Nikkei finished down 5.25% and 7.48%, respectively. This made Japan
the worst market in August, which was driven by worse-than-expected
ASIAHEDGE MEDIAN INDICES VS economic data. Exporters were also hurt by the strong yen, which
MSCI PACIFIC FREE fluctuated wildly against the US dollar, as the BoJ showed lack of
% 150
action to intervene the currency market. Therefore, it is no surprise
that Japanese long/short equity funds were the worst performers in
120
August, falling an estimated 2.12% (USD class) and 2.61% (yen class).

90
Asia excluding Japan equity Despite encouraging domestic economic
60 and trade data, most Asian markets fell in August. The strong market
momentum from July faded as data from the US worsened and the
30 MSCI Pacific ex-Japan finished the month down 1.95%. The region was
led down by Hong Kong and Taiwan suffered a sharp fall as technology
0 was the weakest sector. On the upside, smaller ASEAN markets once
again managed to gain, including Thailand, the Philippines and
-30 Malaysia. Funds in this space fell an estimated 0.42% in August and
down 1.90% for the year to date.
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which affected the market. The China A share market finished flat in
MSCI Pacific Free Net
August, but is still down 19.48% for the year to date. Within China,
AsiaHedge Composite Index
AsiaHedge Japanese Equity Index USD
growth and imports appeared to slow and as further tightening policies
AsiaHedge Asia including Japan Index USD in the property market continued, Hong Kong fell for the month (down
AsiaHedge Asia excluding Japan Index USD 2.35%). Despite the negative news, Chinese equity was the best-perform-
ing strategy in August, gaining an estimated 1.49% median return.

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Covering the global
fund of funds industry

Mandates pick up as pension funds restructure

INVESTHEDGE INDICES HEDGE FUND STRATEGIES
Medians Means
Best-performing strategy
Strategy Aug-10 YTD Aug-10 YTD The InvestHedge Global macro currency index was one of the
Arbitrage USD Index 0.26% 1.44% 0.21% 0.71% top-performing strategies in August, up 1.11%, reporting estimated
Asian Pacific Fund of Funds Index 0.10% -2.35% 0.01% -2.66% gains of 0.16% year to date and outperforming the MCSI World Index,
Asset Based Lending Index 1.50% 2.94% 1.90% 4.04%
which was down -3.73%. Global macro managers capitalised on
Commodities Index 0.06% -4.61% 0.36% -4.38%
rising bond prices and movements in the grain markets. With funds
Distressed Index 0.07% 2.39% -0.21% 1.86%
continuing to report, this is subject to change in the coming weeks.
Emerging Managers Index -0.46% -1.22% -0.73% -1.68%
Emerging Markets Hedge USD Index -0.53% -0.08% -0.88% -1.07%
European Equity EUR Index -1.03% -2.26% -0.76% -2.43%
Worst-performing strategy
European Multi Strategy EUR Index -0.26% -0.27% -0.94% -1.47% The InvestHedge Global Equity index was one of the worst performing
Fixed Income USD Index 0.51% -3.25% 0.48% 3.96% strategies last month, with the median down 0.42% and the mean
Global Equity USD Index -0.42% -1.34% -0.43% -1.26% down a further 0.43% reporting a year-to-date loss of -1.34% and
Global Macro Currency USD Index 1.11% 0.16% 1.36% 1.00% 1.26%, respectively. Equity markets suffered a fall in August as
Global Multi Strategy EUR Index 0.13% -0.73% 0.09% -0.97% markets reacted to the release of soft US economic data, with housing
Global Multi Strategy USD Index 0.18% -0.12% 0.11% -0.12% sector, retail sales and business sentiment figures all pointing to
Leveraged Global Multi-Strategy USD Index -0.27% 0.20% 0.08% 0.50% slowing growth, markets fell considerably resulting in the S&P 500
US Equity Index -0.29% -0.58% -0.28% 0.21%
reporting losses of 4.74% for the month.
InvestHedge Composite Index 0.06% -0.33% 0.05% -0.55%

New funds
INVESTHEDGE MEDIAN INDICES VS MSCI WORLD Credit Suisse has launched a UCITS III-compliant multi-strategy
% 120 fund of funds with some $130 million in day one investments,
making it one of the largest UCITS III fund of funds launches so far.
100 The Credit Suisse Solutions (Lux) Prima Multi Strategy fund will
invest in some 20 underlying managers, of which at least half will
80
be run by the same managers in their flagship global multi-strategy
fund SAPIC 98. The Luxembourg-domiciled fund will invest in
60
various alternative investment strategies in the liquid UCITS-
compliant universe including: equities, event-driven, convertibles,
40
macro, credit, managed futures, fixed income, emerging markets
20 and interest rates. The fund is open to both institutional and retail
investors and offers weekly liquidity.
0
Mandates
-20 August was the month when funds of funds began to show a bit
of a comeback. The size of the individual mandates totalled $575
-40
million, although not as large a figure as it would have been prior
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their niche as pension funds revamp their hedge fund programs.

MSCI The World Index – Net
InvestHedge Leveraged Global Multi-Strategy USD In particular, emerging-manager funds of funds gained interest,
InvestHedge Global Multi-Strategy USD riding on the wave of New York State’s allocation over the summer
InvestHedge Global Equity USD to Rock Creek. Roughly $3 billion in searches were announced over
InvestHedge European Multi-Strategy EUR
the summer; while a number of US public pension plans begin to
InvestHedge European Equity EUR
InvestHedge Composite search for hedge fund consultants for the first time and wind down
asset-liability studies.

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 Absolute
UCITS

Latest UCITS III developments

Single-manager UCITS III news
AUGUST UCITS PERFORMANCE INDICES • Threadneedle has announced plans to launch a new UCITS III-
Medians Means
Strategy Aug-10 YTD Aug-10 YTD
compliant UK long/short equity fund. The Threadneedle UK Absolute
Absolute UCITS European Equity Index -0.38% -0.25% -0.38% 0.74% Alpha fund will apply the same strategy as the UK Crescendo fund
EuroHedge European Equity EUR Index 0.00% 0.00% 0.16% -0.99% and will be managed by Mark Westwood and Chris Kindler.
Absolute UCITS Composite Index 0.13% 0.52% -0.10% -0.54%
• GAM has launched its first market-neutral credit fund, in collaboration
HedgeFund Intelligence Global Index – Composite 0.29% 1.76% 0.27% 1.63%
with San Francisco-based credit manager DCI. GAM Star Diversified
EQUITY BENCHMARKS Market Neutral Credit is a UCITS III fund that will use DCI’s quantitative
approach to invest in a diversified long/short portfolio, predominantly
Benchmark index Aug-10 YTD
MSCI Europe – Net -2.16% -3.36% focused on investment grade credit.
FTSE 100 (London) -0.62% -3.47% • Liechtenstein-based managed futures firm Qbasis Invest is launching
DAX (Frankfurt) -3.62% -0.54%
a UCITS fund to complement its suite of products. The unnamed fund
is a single-manager, multi-strategy fund that uses managed futures and
is expected to launch at the end of this year or at the beginning of 2011.
UCITS INDICES VS EUROHEDGE EUROPEAN
EQUITY AND MSCI EUROPE • A European UCITS version of US-based York Asset Management’s
Lion Fund, which uses merger arbitrage strategies, has been launched
% on Germany’s Universal-Investment alternative investments platform.
30
The York Lion Merger Arbitrage Liquidity Fund UI is one of the first
global merger arbitrage strategies in a UCITS-fund format in Europe.
20
• New York-based alternative investment manager P Schoenfeld Asset
Management is running the first UCITS fund on Morgan Stanley’s
10 platform FundLogic. The fund, MS PSAM Global Event UCITS, is
domiciled in Ireland, has weekly dealing and uses a global event-
driven investment strategy.
0

Multi-manager UCITS III news

-10 • EIM, the Pfäffikon-based fund of funds group, has launched a
Luxembourg-domiciled UCITS Sicav umbrella to complement its
bespoke service. The number of underlying managers in its funds
-20
varies between six and 20, depending on asset class.
• Signet Capital Management, a $1.4 billion fund of funds, has launched
-30
its first UCITS-compliant fund in response to growing demand from its
institutional and private bank clients. The Signet Multi-Strategy Fund
-40 offers weekly liquidity, and will allocate globally to approximately
15 hedge funds that follow limits set in the UCITS III regulations.

-50
• Axa Investment Managers is planning to launch its first fund of
UCITS hedge funds in the first quarter of next year. The fund will
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distressed assets because they are less liquid.

EuroHedge UCITS European Equity Index (Median)
EuroHedge European Equity EUR Index (Median) • The London-based fund of funds, Key Asset Management, is to
HedgeFund Intelligence Global Index – UCITS launch a UCITS III hedge fund-compliant product. Subject to regulatory
HedgeFund Intelligence Global Index - Composite
approval, the fund will launch in October and will seek to allocate to
MSCI Europe - Net
a broad range of underlying strategies.

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

 Research
H1 2010 Asia-Pacific launches show strength
Despite being one of the toughest asset-
raising climates in its history, the new
Total number of Asia-Pacific funds versus AUM: 1H 2005 – 1H 2010
fund launch space for Asia Pacific hedge
Number of funds
funds in 2010 appears to show surprising
AUM $m
strength, and interestingly enough, Hong 80 6,000

Kong emerges as the location of choice for

70 5,000
a majority of these funds during the first
Number of funds

half of the year. 60 4,000

AUM $m
The AsiaHedge New Funds Survey (based
50 3,000
on fund launches recorded and confirmed
by AsiaHedge), shows that new funds 40 2,000

managed to garner as much as $2.13 billion

30 1,000
in the first half of the year. If you compare
that to the $2.5 billion raised by new funds 20 0
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20
over the whole of 2009, one can see the
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IH
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2H
evidence of a clear and continued interest Source: AsiaHedge

in Asian hedge fund strategies. But a closer

look at the statistics shows that, without
doubt, all of the successful launches have
come from seasoned managers with strong
reputational and operational muscle, either
at a personal or firm level.
The survey also shows that in the first
half of 2010, there were a little over 50
new funds brought to the market. This is
not bad, considering that the barriers to
entry are probably the highest ever, and
in fact the number of launches is up a
good 36% as compared to 39 launches in
the same period of 2009. Total assets
raised by these new launches also showed
a sharp increase, with the figure in 1H
2010 growing 90% over the $1.12 billion
raised in 1H 2009 and 43.6% over the $1.48
billion raised in 2H 2009.
Before we pop open the champagne,
though, we need to understand that this
does not necessarily translate into net new
allocations into Asia. We are still hearing of
redemptions from hedge funds across Asia
and only a slim trickle of new inflows
coming into the region, which means that TCI head John Ho’s Janchor Partners
the assets raised by new fund launches are (launch size $100 million).
probably to a large extent a result of The remaining names in the top 10
reallocation of assets by investors within category are also from well-established,
the region. Also, some of this is also the large managers, such as ADM Capital and
residual effect of the asset raising and Income Partners, reinforcing our view that
marketing momentum started by several assets are largely going to large-scale hedge
of these new managers in late 2008 to 2009, fund operations with long track records.
as well as the fact that many investors We also include Lei Zheng’s Hillhouse for
were≈procrastinating in 2009 before finally the first time in our New Funds Survey
deciding to put their money to work. which, with its $250 million launch of its
Also, we need to differentiate here Gaoling natural resources fund, takes the
between pure start-up launches and veteran top slot among new funds in 1H 2010.
hedge fund managers making a comeback Launch sizes have also gone up so far
by relaunching their strategies in slightly this year. The average size in 1H 2010
more liquid and operationally slimmer was $40 million, up slightly from $39
avatars. The latter make up a large chunk million in 2H 2009 and $17.04 million
of players among the top 10 launches of in 2H 2008, when the Asian hedge fund
1H 2010. Examples include former Abax industry was at its nadir.
co-founder Chris Hsu’s Kilometre Capital,
which at $170 million is the second-larg- For the full AsiaHedge article, visit:
est launch of the season, ex-Gandhara www.hedgefundintelligence.com/Article/2634824/
founder Davide Erro’s Turiya Capital AsiaHedge-Industry-Analysis/Old-hands-show-
(launched with $150 million) and former their-strength-in-Asia.html

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 The world’s leading
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bigger HedgeFund Intelligence provides the most

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Absolute
UCITS
 Data
Absolute UCITS proves a draw for database
NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING AUGUST
With the launch later this month of the online EuroHedge InvestHedge
dedicated UCITS alternative database – Absolute AsiaHedge Absolute Return Absolute UCITS
UCITS, the HFI UCITS database saw a surge in new 120

Number of funds added to

funds added with 76 UCITS funds added to the 100
database during August. The majority of funds 80
were based out of Europe and nearly 30% of funds

HFI database
60
were fund of UCITS funds. Meanwhile, we saw
40
36 traditional hedge funds added to the database
during last month, 21 within EuroHedge, 10 in 20
Absolute Return and 5 from AsiaHedge. 0
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

NUMBER OF FUNDS LIQUIDATED DURING AUGUST*

EuroHedge InvestHedge
The HedgeFund Intelligence research and data
AsiaHedge Absolute Return Absolute UCITS
team liquidated 51 funds during August, with 80
Number of funds liquidated

InvestHedge liquidating 23, EuroHedge closing 20 70

and Absolute Return and AsiaHedge closing five 60
and three respectively. The majority of funds 50
40
liquidated were based in the UK with more than
30
20% of all funds being run out of London. No
20
particular strategy dominated, though there were 10
a handful of European equity funds and emerging- 0
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10
market equity funds closing during August.
* de-duped to exclude multiple share classes

DISTRIBUTION OF PERFORMANCE
%
Positive Negative
While equity markets sold off during August,
100
hedge funds also had a challenging month, with
80
only 56% of funds posting positive performance
for August. The HedgeFund Intelligence 60

Composite index still managed to outperform 40

its equity benchmarks, up 0.23% for the month 20
compared to the MSCI the World Index, which was 0
down 3.36% for the month. As funds remained
09
9

09

09

09

10

10

-10

-10

10

10
l-0

t-0

r-1

l-1

g-
n-

b-

n-
g-

p-

v-

c-

cautious, their short positions helped offset

ar

ay

Ju
Ap

Au
Ju

Ja

Ju
Fe
Oc

De
No
Au

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negative performance from their long books.

GlobalBriefing: Data
If you have a fund which you wish to be included please contact the following:
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Samantha Munday Amal Robleh Wing-Yung Lok Meera Mehta Amy Kirbyshire
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 Latest WEEKLY news

Sandell’s assets fall as Castlerigg Ex-BlueCrest, GLG man Autumn musical chairs for Maryland issues RFI for
logs uninspiring returns Walsh joins Lombard Odier the Asian hedge fund space emerging managers
Tom Sandell’s Sandell Asset as EM debt head A spate of new hires in the The Maryland State Retirement
Management has lost over 57% of Richard Walsh, a veteran of hedge fund industry indicates and Pension System is
its firmwide assets over the past BlueCrest Capital Manage- that firms are gearing up for considering the creation of an
year. The firm is now managing ment, GLG Partners and Citi’s competitive growth amid emerging manager fund of
about $1.09 billion as of July 1 EMSO hedge fund operation, global economic recovery and hedge funds programme and
down from the $2.53 billion it has joined Lombard Odier strengthened investor has issued an RFI to retain one
managed last summer. Investment Managers as head confidence in Asia. or more managers.
of emerging market debt.
Impala’s flagship hits a rough Certitude hires ex-RIM man Former UVIMCO exec to lead
patch in August GAM teams with US firm DCI to head distribution new alternative business
Robert Bishop’s Impala Asset for UCITS launch Sydney-based Certitude Global Bruce MacDonald, former
Management took a hit in August GAM has launched its first Investments, formerly HFA director of asset allocation and
in its flagship long/short equity market-neutral credit fund, Asset Management, has risk analysis at the University
strategy. The Impala Fund was in collaboration with San appointed Hector Ortiz as head of Virginia Investment
down an estimated 4.30% in the Francisco-based credit of distribution. He will focus Management Company
onshore, while the offshore was manager DCI, with a strategy will on distributing Certitude’s (UVIMCO), is one of three
down around 4.20%. The AR that the firm describes as flagship products, which founding partners of Simple
Equity Index was down an “a unique offering in the include the Certitude Asian Alternatives, a firm that plans
estimated 1.78% in August, as of growing UCITS III universe”. Opportunities Fund. on offering a multi-manager,
early September. hedge equity alternative
Insparo hires Stock as firm’s Lux body names Asia head mutual fund in October.
D.E. Shaw to give back money chief strategist to promote UCITS in region
in multi-strategy fund Insparo Asset Management, the In a major sign that UCITS are Barclays Wealth beefs up
D.E. Shaw is making good on London-based frontier markets headed to Asia, the Association hedge fund expertise
redemption requests from investment firm focused on of the Luxembourg Fund Barclays Wealth, an
investors in its multistrategy Africa and the Middle East, has Industry has appointed Ching investor in hedge funds
D.E. Shaw Composite fund after hired emerging markets Yng Choi as head of its new Asia for its clients, has expanded
almost two years of limited veteran Graham Stock as chief office. Based in Hong Kong, she its alternative investment
withdrawals, and the firm strategist. Stock joins the core will help raise awareness of origination and distribution
expects assets to drop signifi- management team led by CIO Luxembourg as a fund domicile teams with a number of
cantly as a result. Mohammed Hanif. and promote UCITS in Asia. senior hires.

Compiled by head of research & data Group publisher John Willis Customer Services

GlobalBriefing Damian Alexander

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Managing director John Orchard
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Published by HedgeFund Intelligence, Nestor House, US/Europe James Barfield
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