Global Briefing Aug 2010

8/9/2019 Global Briefing Aug 2010

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HEDGE FUND INDUSTRY GLOBAL NEWS ROUND-UP RESEARCH ABSOLUTE UCITS

GlobalBriengVolume 3 Issue 10 August 2010 A HedgeFund Intelligence publication

He dgeFun d Intelligence

Funds still lead markets or the year to date GLOBAL SUMMARY

Following two very difcult months, July equity markets strengthened

after concerns over a stagnant recovery gave way to renewed optimism.

Despite most leading bourses surging over 5%, equity hedge funds

underperformed, having been cautious in recent months, with the

HedgeFund Intelligence Global Equity Index returning an estimated

1.56% in July, much lower than the MSCI The World Index (up 8.11%).

Despite this, equity hedge funds are still ahead of underlying markets on a

year-to-date basis, performing at which compares favourably to the FTSE

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%) .

While the slowdown in Chinese economic activity has worried

investors, there was renewed condence in the Asia-Pacic region with

rising expectation of policy easing and a belief of future growth in

manufacturing. Chinese equity hedge funds were the second highest

performers in the region, up 3.07%, just behind Australian equityhedge funds, which were the highest performers globally, up 4.20%.

Investor sentiment towards Europe improved after successful

Eurozone bank stress tests, clarity on Basel III, successful bond auctions

in Greece and Spain, as well as encouraging economic data from the

region. European hedge funds had one of the best months this year,

with the EuroHedge Composite Index up 0.95% in July.

The US seemed more sluggish in July after a round of subdued

economic data and growing concerns over its rising scal problems.

However, managers performed well in July with the Absolute Return

Composite Index matching its European counterpart on the month but

still ahead at 2.22% for the year so far.

CONTENTS 1 Global summary3 The Americas summary Risk appetite returns despite the uncertainty4 Europe summary UK leads in Europe as equities rebound5 Asia-Pacic summary Japan lags as Asia-Pacic markets rally6 Funds of funds summary Global macro currency gures disappoint8 Absolute UCITS Latest UCITS III developments9 Research European launches pick up in H111 DataPositive results distribution recovers in July

12 Latest weekly news For more information please contact: Damian Alexanderemail : [email protected] tel: +44 (0)20 7779 7361

Medians MeansStrategy Jul-10 YTD 10 Jul-10 YTD 10Equity 1.56% -0.19% 1.88% 0.56%Macro -0.10% 1.77% -0.47% 0.68%

Managed Futures -0.69% -0.33% -0.34% -0.25%Event Driven 1.75% 2.60% 2.18% 2.45%Emerging Market Debt 1.47% 5.11% 1.43% 6.69%

Emerging Market Equity 2.47% -1.18% 2.84% -0.08%Global UCITS 0.57% 0.47% 1.45% -0.34%HFI Global Composite 0.95% 1.46% 1.32% 1.39%

GLOBAL INDICES (EST)

%

MSCI World Index - Net

HedgeFund Intelligence Global Index - Macro

HedgeFund Intelligence Global Index - Managed Futures

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

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GLOBAL COMPOSITE MEDIAN INDICES


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3/12

Risk appetite returns despite the uncertainty

Covering the single manager hedgefund industry in the Americas

HEDGE FUND STRATEGIES

Equities Equity funds were up in July with US, Global and Tech-nolgy funds posting estimated returns of 1.62%, 1.81% and 1.38%

respectively. The S&P 500 Index was up 6.88%, its best monthly gain

since June 2009, as growing macro concerns drove equity markets

and pressured stocks. Funds with a low exposure in July, following

the markets turbulence in June, were not positioned to benet from

the global rally in the market.

Distressed Funds Hedge funds running distressed strategiesperformed relatively well in July with an estimated gain of 0.77%

for the month. Managers that performed best within this space

achieved gains through long positions on equity and credit, while

those with market shorts suffered somewhat. Some managers

were able to take advantage of the market rally to reduce their

exposure.

Commodities/CTA Commodity funds and C TAs both posted

estimated losses of -1.40% and -0.49% respectively. Negativecontributions within this space came as markets were caught

off guard by Russias worst ever drought and the most signifi-

cant rise in wheat prices since 1973. As prices appear to be on

the rise, the agricultural sector holds much interest for

investors.

Macro Macro funds had an uneventful month during July,remaining at with an estimated median of 0.00%. Some funds

within this space avoided losses with the use of tactical risk overlays

in futures. Managers focused on the positives reected by the US

earnings season as the majority of companies either met or exceededexpectations.

Medians MeansStrategy Jul-10 YTD 10 Jul-10 YTD 10Mixed Arbitrage Index 1.11% 1.66% 1.95% 2.71%Commodities Index -1.40% -2.07% -1.44% -1.70%

Convertible & Equity Arbitrage Index 1.28% 3.66% 1.41% 4.14%Credit Index 1.20% 6.41% 1.83% 8.23%Distressed Index 0.77% 5.48% 1.22% 6.73%

Event Driven Index 2.10% 4.38% 2.31% 3.40%Fixed Income Index 0.95% 5.38% 1.03% 5.79%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%

Multi-Strategy Index 0.52% 2.36% 0.62% 1.17%Technology Index 1.38% 1.79% 2.43% 3.73%U.S. Equity Index 1.62% 0.13% 2.21% 2.39%

Absolute Return Composite Index 0.95% 2.22% 1.27% 2.07%

ABSOLUTE RETURN INDICES (EST)

%

S&P 500

MSCI World

Absolute Return Composite Index

Absolute Return Global Equity

Absolute Return U.S. Equity

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MARKET EVENTS

Stocks display highest monthly gain in a year Bernanke describes economic outlook as unusually uncertain Consumer price index rises by 0.3% New home sales rebound after Junes record low Concerns remain over labour market

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ABSOLUTE RETURN MEDIAN INDICES VSMSCI WORLD INDEX AND S&P 500


4/12 GlobalBrieng is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbrieng.aspx August 20104

UK leads in Europe as equities rebound

Covering the single managerhedge fund industry in Europe

HEDGE FUND STRATEGIESEuropean Equity European markets rebounded during July as bettercorporate results and the release of the European bank stress test results

increased investor condence. All European markets were up during July,

with the UK leading the way. The FTSE gained 6.94% for the month,

while the French CAC and German DAX saw increases of 5.82% and

3.06% the MSCI Europe posted a gain of 5.86% for July. European long/

short hedge funds remained cautious during the month with their short

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.

Managed Futures While Europe saw better economic data within the

region, the US and China proved to be a little more shaky, with theFederal Reserve in the US lowering its growth outlook and China

experiencing a slowdown. As global equities rallied, long positions helped

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

points though is still positive for the year at 1.04%.

Fixed Income As investors moved away from safe haven assets, theEuroHedge xed income index posted a small median loss of 13 basis

points for July its rst negative monthly return since December 2008.

As concerns over the European economy decreased, swap tradingincreased as the market saw an increase in new issuances. With the rise in

new issuance, swap rates rose higher than treasury yields, as the Federal

Reserve revised down its growth forecast causing losses for long positions

in US Treasuries. The EuroHedge Fixed Income index is still up for the

year, with a gain of 4.45%.

Event Driven After two consecutive months of negative performance,the EuroHedge Event Driven index is once again positive for the year, up

0.11% for the rst seven months of the year. Volatility in the market

decreased, while in Europe M&A activity picked up especially in the UK.

With credit spreads tightening and the equity rally, the index posted anestimated median gain of 1.5% for July its highest return for 12 months.

Medians MeansStrategy Jul-10 YTD-10 Jul-10 YTD-10European Equity USD 1.61% -0.63% 1.97% 0.05%European Equity GBP 2.29% -0.48% 2.96% 0.61%European Equity EUR 1.55% 0.38% 1.76% 1.18%Macro USD -0.03% 1.73% -0.64% 1.30%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%Credit USD 0.08% 3.99% 0.62% 4.21%Currency 0.90% 2.85% 2.03% 5.45%Event Driven USD 1.50% 0.11% 2.66% 1.27%Mixed Arbitrage & Multi Strategy USD 0.88% 2.69% 3.09% 5.83%Equity Market Neutral &Quantitative Strategies USD -0.10% 2.21% 0.24% 2.00%Convertible & Equity Arbitrage USD 2.29% 4.22% 2.39% 5.72%Emerging Market Debt USD 1.23% 4.87% 0.91% 4.00%Emerging Market Equity USD 1.72% 0.35% 2.57% 0.01%UCITS European Equity 1.01% 0.33% 1.41% 1.14%EuroHedge Composite 0.95% 0.99% 1.24% 1.01%

EUROHEDGE INDICES (EST)

%

MSCI Europe - Net

EuroHedge Global Equity USD Index

EuroHedge Macro USD Index

EuroHedge Fixed Income USD Index

EuroHedge Managed Futures USD Index

EuroHedge European Long/Short Equity EUR Index

EuroHedge Composite Index

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MARKET EVENTS Santander buys 173 SEB branches in Germany Portugal and Ireland see credit rating downgraded Hungary receives an emergency bailout Seven out of 91 banks in Europe fail the European stress test

EUROHEDGE MEDIAN INDICES VSMSCI EUROPE



Japan lags as Asia-Pacic markets rally

Covering the single manager hedgefund industry in the Asia-Pacic

Asia excluding Japan Equity Asian markets rallied in July, ascondence in Chinas recovery grew and US Q2 earnings were better

than expected. The MSCI Pacic Ex-Japan gained a staggering 10.26% for

the month, but is still down 2.52% for the year-to-date. Asia excluding

Japan funds underperformed this benchmark by gaining an estimated

2.75% median return. Within the region, China was the best performer

and Taiwan, which was pushed up by technology, came in second.

Australian Long/Short Equity After falling for the last three months,the Australian All Ordinaries gained 4.22% in July, driven by strong US

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%,but is still negative for the year, down 2.62%. Cyclical sectors such as

nancials, industrials, materials and energy were the best performers.

Defensive sectors lagged, including information technology, healthcare

and utilities.

Japanese Long/Short Equity The Japanese market was weak in Julyas the strong yen caused the countrys exporters to suffer. The yen

tested a ten year high and the TOPIX underperformed the region, by

only gaining 0.97% for the month. Japanese long/short equity (JPY

denominated) was the only strategy down for the month, posting an

estimated -0.34% median return. Political uncertainty also affected themarket, as the ruling Democratic Party of Japan failed to gain a

majority in the upper house election.

Single Country Although India lagged the region in July with theSensex up only 0.95%, India is the only regional market up for the

year so far, up 2.31%. Indian equity funds just underperformed their

benchmark at 0.82%, but are outperforming for the year to date, up

4.21%. The MSCI China was up 4.37% for the same period, following

expectations of policy changes, growth in manufacturing and

increased condence in the region. Chinese long/short equity funds

also performed well in July, with an estimated 3.07% median returnso far.

Medians MeansStrategy Jul-10 YTD Jul-10 YTDAsia including Japan USD 1.52% -1.83% 2.07% -1.90%

Asia excluding Japan USD 2.75% -2.09% 3.37% -0.28%Chinese Equity 3.07% -4.70% 3.50% -4.70%Indian Equity 0.82% 4.21% 1.08% 6.34%

Japanese Equity USD 0.23% 1.45% -0.39% 0.73%Japanese Equity JPY -0.34% 1.55% -0.75% 0.15%Australian Equity AUD 4.20% -2.62% 4.11% -1.86%

AsiaHedge Composite 1.22% 0.77% 1.71% 0.49%

ASIAHEDGE INDICES (EST)

%

MSCI Pacic Free Net

AsiaHedge Composite Index

AsiaHedge Japanese Equity Index USD

AsiaHedge Asia including Japan Index USD

AsiaHedge Asia excluding Japan Index USD

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MARKET EVENTS

China stops tightening as property shows signs of slowing Markets remain volatile over fears of a double dip global recession Employment data continues to improve in Australia China A-Shares come back strongly in July (10%)

EQUITY BENCHMARKSBenchmark index Jul-10 YTDMSCI Pacic Free Net 5.90% -0.48%MSCI Pacic ex Japan 10.26% -2.52%MSCI China 4.37% -2.03%

China Shanghai Composite Index 9.97% -19.52%Sensex 0.95% 2.31%TOPIX 0.97% -5.46%

Nikkei 225 1.65% -9.57%Australian All Ordinaries 4.22% -7.69%Hang Seng 4.48% -3.85%

ASIAHEDGE MEDIAN INDICES VSMSCI PACIFIC FREE



Global macro currency gures disappoint

Covering the globalfund of funds industry

HEDGE FUND STRATEGIESBest performing strategyThe InvestHedge Global Equity index was one of the top performing

strategies last month, up 1.15% despite reporting estimated losses of

0.92% year to date and underperforming the MCSI World Index quite

considerably (up 8.11%). Equity markets advanced in July with

improved global economic data. The US markets responded well to

improved housing data followed by strong Q2 earnings and the

European bank stress test results look to have reassured the markets

with only seven of the 91 banks failing.

Worst performing strategyThe InvestHedge Global Macro Currency Index was one of the worst

performing strategies last month, with the mean down 0.41% and the

median down a further 0.45%, reporting year-to-date losses of 0.46%

and 0.95% respectively. Global macro managers experienced a drastic

drop in volatility and a strong rebound of the more risky assets last

month, resulting in many funds reporting losses. With funds

continuing to report, the full results are subject to change in the

coming weeks.

New fundsNew York-based rm StoneWater Capital, with $135 million under

management has recently launched the StoneWater Capital

Opportunities fund, with initial assets of $16 million, to answer a

client-driven need for a multi-strategy, multi-manager global

emerging markets fund. The fund currently has four Asian managers:

one volatility player; one even-driven manager; a distressed debt

hedge fund; and a long/short equity manager, with plans to add a

pan-emerging markets manager in coming months. The aim of the

fund is to have a concentrated portfolio of between 15-20 managers

and the fund will be run with no leverage.

MandatesThe number of hedge fund searches continued to rise this summer

with InvestHedge now tracking 16 new searches totaling $6 billion.

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

made in July and early August. Popular strategies continue to be

distressed and long/short equities. Public pension funds are fertilising

their hedge fund portfolios and account for 10 new searches. The

majority of these RFPs are for single manager hedge funds, but fund

of funds rms such as Rock Creek, Permal and Crest line have alsobeen hired recently by US public pensions.

Medians MeansStrategy Jul-10 YTD-10 Jul-10 YTD-10

Arbitrage USD Index 0.40% 1.12% 0.22% 0.35%

Asian Pacic Fund of Funds Index 1.20% -2.44% 1.20% -2.70%

Asset Based Lending Index 0.14% 1.06% 0.14% 1.79%

Commodities Index 1.11% -4.71% 0.37% -4.99%

Distressed Index 0.56% 2.27% 0.47% 1.93%

Emerging Managers Index 0.20% -0.76% 0.45% -1.12%

Emerging Markets Hedge USD Index 1.92% 0.87% 2.02% 0.28%

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%

Global Equity USD Index 1.15% -0.92% 1.41% -0.77%

Global Macro Currency USD Index -0.45% -0.95% -0.41% -0.46%

Global Multi Strategy EUR Index 0.42% -0.74% 0.41% -0.99%

Global Multi Strategy USD Index 0.60% -0.20% 0.75% -0.09%

Leveraged Global Multi-Strategy USD Index 0.46% 0.53% 0.63% 0.99%

US Equity Index 1.18% -0.21% 1.29% 0.54%

InvestHedge Composite Index 0.58% -0.38% 0.61% -0.61%

INVESTHEDGE INDICES

%

MSCI The World Index NetInvestHedge Leveraged Global Multi-Strategy USDInvestHedge Global Multi-Strategy USDInvestHedge Global Equity USDInvestHedge European Multi-Strategy EURInvestHedge European Equity EUR

InvestHedge Composite

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Jul-10Jul-09Jul-08Jul-07Jul-06Jul-05Jul-04Jul-03Jul-02

INVESTHEDGE MEDIAN INDICES VS MSCI WORLD


7/12

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Single-manager UCITS III news Jabre Capital Partners is gearing up to manage a second fund in an

onshore UCITS III format. The Jabcap (Lux) Global Balanced UCITS

Fund, a Luxembourg-based structure, will be managed in a similar

way to the rms existing Jabcap Global Balanced offshore fund,

which takes an absolute return approach in global equities.

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

the rms ARF-Japan Fund, a long/short equity strategy launched in

2000. Japan Absolute Alpha will be managed by John-Paul Temperley

and Keith Donaldson.

Thayer Brook Partners is planning a UCITS III version of the Thayer

Brook Global Diversied Fund, which is expected to launch later this

year. The strategy will be on Deutsche Banks db Select platform.

GWM Institutional, a Geneva-based family ofce, has launched 7H

Absolute, a UCITS III hedge fund that aims to grow to 500 million in

the next few years. The Luxembourg-domiciled fund, a European equity

SICAV fund, is managed by Simone Chelini and Pietropaulo Rinaldi.

Certitude Global Investments is offering the MW GeveKal AsianOpportunities 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

Marshall Wace GaveKal Asia.

Multi-manager UCITS III News Credit Suisse has launched a UCITS III compliant multi-strategy fund of

funds, with some $130 million in day one investment. The Credit Suisse

Solutions (Lux) Prima Multi-Strategy fund will invest in 20 underlying

managers, at least half of which are run by the same mangers in theSAPIC 98 Fund, the banks agship global multi-strategy fund.

Gottex Fund Management has launched a UCITS III fund of funds

product in Luxembourg in July, and is now in the process of passport-

ing it to the rest of Europe.

Industry News UCITS funds posted net outows of 23 billion in May according to the

European Fund and Asset Management Association (EFAMA). For the rst

time since March 2009, long-term UCITS funds those excluding money

market funds registered net outows of 8 billion. Despite this, the fundshave seen net inows of 108 billion for the rst ve months of 2010.

Latest UCITS III developments

%

MSCI Europe - Net

HedgeFund Intelligence Global Index - CompositeHedgeFund Intelligence Global Index UCITSEuroHedge European Equity EUR Index (Median)EuroHedge UCITS European Equity Index (Median)

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UCITS INDICES VS EUROHEDGE EUROPEANEQUITY AND MSCI EUROPE

Medians MeansStrategy Jul-10 YTD -10 Jul-10 YTD -10EuroHedge UCITS European Equity Index 1.01% 0.33% 1.41% 1.14%EuroHedge European Equity EUR Index 1.55% 0.38% 1.76% 1.18%HedgeFund Intelligence Global Index - UCITS 0.57% 0.47% 1.45% -0.34%

HedgeFund Intelligence Global Index - Composite 0.95% 1.46% 1.32% 1.39%

JULY UCITS PERFORMANCE INDICES

EQUITY BENCHMARKSBenchmark index Jul-10 YTD -10MSCI Europe - Net 5.86% -1.23%FTSE 100 (London) 6.94% -2.86%

DAX (Frankfurt) 3.06% 3.20%

AbsoluteUCITS



The pace of new hedge fund launches in

Europe is continuing to pick up from its

lowest point in the rst half of 2009, but is

still running at historically low levels.

The bi-annual new fund survey conduct-

ed by the EuroHedge data and research

team shows that at least 58 new hedge

funds launched in the rst six months of

this year, raising a combined $3.75 billion

as at the end of June.

That compares with 47 funds raising a

mere $2.1 billion in the rst half of last

year which was the lowest rst-half

gure since 2001 and represents a rise of

80% in terms of the assets raised, although

the increase in the number of funds is

much lower at less than 25%.

The improvement is more marked,

however, if one takes into account the

number of new onshore hedge fund

strategies that have been launched so far

this year in Europe under the regulatedUCITS framework.

The survey shows that new UCITS hedge

fund launches accounted for a further $3.1

billion almost as much again as was

raised in traditional hedge fund launches.

For the purposes of this survey, we

include only those new UCITS funds that

were launched by existing hedge fund

management companies; funds that are

replications or versions of existing hedge

fund strategies; or other UCITS fundslaunched by non-hedge fund rms that

genuinely use hedge fund strategies and

techniques.

Taken together, the $6.85 billion raised

in new hedge and UCITS hedge funds

points to a much more healthy bounceback

in overall new launch activity in Europe

taking the rst-half gure closer to the

$8.2 billion in assets that was raised in the

rst half of 2003.

However, it is still a very far cry from the

peak of $15.5 billion raised in new fund

launches in the rst half of 2007 when a

staggering 189 new hedge funds launched

in the rst six months of the year alone.

And new fund activity in Europe is

lagging that in either Asia or the US, where

the rate of recovery has been more rapid

reecting the much lower condence

that investors currently have in the

investment prospects in the European area

compared to other parts of the world.

This is partly as a result of the extreme

volatility seen in European nancial

markets since the start of the year. But it

also reects the intense uncertainty

surrounding the EUs 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 nancial 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 difcult asset-raising andgeneral market environments, there have

been some signicant 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

European launches pick up in H1

Research

New European hedge funds,H1 2010:by strategyStrategy No of funds Assets ($m)European Equity 12 703Global Equity 10 696Macro 5 617Mixed Arbitrage & Multi-strategy 2 564Commodities 5 282CTA 7 271

Emerging Market Equity 6 208Event Driven 2 173Fixed Income 1 100Equity Market Neutral & Quant Strategies 3 82Convertible Arbitrage 1 30Credit 1 11Asian Equity 1 10US Equity 1 3Volatility Trading 1 3Total 58 3,752 Source: EuroHedge Database

New European UCITS hedge funds,H1 2010:by strategyStrategy No of funds Assets ($m)European Equity 19 1,153Convertible Arbitrage 1 1,013Equity Market Neutral & Quant strategies 5 528Macro 2 147Mixed Arbitrage & Multi-strategy 4 127Emerging Market Debt 1 38Emerging Market Equity 2 36Global Equity 1 28US Equity 1 20Credit 1 14Fixed Income 1 13Asian Equity 1 11Total 39 3,129 Source: EuroHedge Database

A s s e t s r a

i s e

d $ b n

N u m

b e r

o f f u n

d s

0

5

10

15

20

J u n - 1 0

J u n - 0 9

J u n - 0 8

J u n - 0 7

J u n - 0 6

J u n - 0 5

J u n - 0 4

J u n - 0 3

J u n - 0 2

J u n - 0 1

J u n - 0 0

0

50

100

150

200Assets raised $bn

Number of funds

New European hedge fundsH1 2000-H1 2010

Source: EuroHedge Database


10/12

The worlds leading

hedge fund database

biggerfaster

clearertrustedsimple

HedgeFund Intelligence provides the mostcomprehensive hedge fund, fund of funds, and UCITSdatabase available. Linked with our extensive newsand research, subscribers can benet from a uniquecombination of quantitative and qualitative analysis.

BiggerWith over 13,000 funds listed in the database, HedgeFund Intelligence providesthe most complete source of hedge funds, and funds of funds than any dataprovider*. With three specialist regional products (Asia-Pacic, Europe and the

Americas) a global fund of hedge funds and a new UCITS Absolute Returndatabase, the HedgeFund Intelligence database will meet your needs.

FasterUpdated weekly with (practically) all data available within four weeks of monthend, the extensive research and editorial team ensure rapid inclusion of newfunds and updates on key data points.

ClearerThe database provides dedicated, clear and detailed information on hedge funds,UCITS Absolute Return funds and funds of funds (without unnecessary multiple shaclasses). Links to news and analysis provide additional information on funds and ove70 non-investable indices are available to benchmark performance.

TrustedWith an experienced and dedicated specialist team gathering and verifying the datato ensure accuracy, this database is used by many of the industrys leading rms.

Simple A user-friendly interface allows effortless sorting by multiple criteria includingfund name, management company, performance, strategy, asset size and date ofinception. Compatible with Pertrac and fully downloadable into Microsoft Excel,

Access and other various third-party platforms. *Comparative information taken from public sources.

AbsoluteUCITS

To nd out how we can tailor this powerful research tool to t your requirements orfor a demonstration, please email [email protected] or contact:

James Bareld +44 20 7779 7336 / [email protected] Sanderson +44 20 7779 7339 / [email protected]



The HFI research and data team added 57 funds to the

database during July. On the single manager side,

EuroHedge saw 30 new funds added and AsiaHedge and

Absolute Return added six each. On the fund of hedge

funds side, InvestHedge added 15 funds to the database

during the month, with over half of these funds being

based in the US. Six of these funds were launched

within the last couple of months. On the single

manager side, nearly 60% of new funds added to the

database were launched within the rst half of 2010.

In total, the HedgeFund Intelligence research

and data team liquidated 40 funds in the

database during July. EuroHedge and In-

vestHedge saw the greatest number of liquida-

tions, 18 and 14 respectively. AsiaHedge and

Absolute Return both liquidated 4 funds. On the

single manager side, 65% of the funds noted as

closed in our database during July liquidated inthe last three months.

July seemed to be a much better month for hedge

funds following on from two difcult months,

which saw the global composite down at 2.12% and

0.39% respectively for May and June. For July, over

70% of the funds which have reported to the

HedgeFund Intelligence database so far are postingpositive performance with the HFI Global Compos-

ite posting an estimated median gain of 0.95% for

the month.

Positive results distribution recovers in July

Data

GlobalBrieng: DataEurope Samantha [email protected]

AmericasAmal Roblehdata@hedge undintelligence.com

Asia-PacicWing-Yung [email protected]

Fund of Hedge FundsMeera [email protected]

For more in ormation on the database and subscriptions please contact Ian Sanderson on + 44 (0) 207 779 7339 or James Bareld on + 44 (0) 207 779 7336

If you have a fund which you wish to be included please contact the following:

NUMBER OF NEW FUNDS ADDED TO THE HFI DATABASE DURING JULY

NUMBER OF FUNDS LIQUIDATED DURING JULY*

DISTRIBUTION OF PERFORMANCE

N u m

b e r o

f f u n

d s a

d d e

d t o

H F I d a t a

b a s e

0

20

40

60

80

100

120

Jul-10Jun-10May-10Apr-10Mar-10Feb-10

InvestHedgeAbsolute ReturnAsiaHedgeEuroHedge

N u m

b e r o

f f u n

d s

l i q u

i d a t e

d

01020304050607080

Jul-10Jun-10May-10Apr-10Mar-10Feb-10

InvestHedgeAbsolute ReturnAsiaHedgeEuroHedge

%

0

20

40

60

80

100

NegativePositive

J u l - 1 0

J u n - 1 0

M a y - 1

0 A p

r - 1 0 M a

r - 1 0 F e b

- 1 0 J a n

- 1 0 D e

c - 0 9

N o v - 0

9 O c

t - 0 9

S e p - 0 9

A u g - 0

9 J u l

- 0 9 J u n

- 0 9

* de-duped to exclude multiple share classes


12/12

GlobalBrieng

Shumway equity fundstung by long positionsLike other equity strategies,

Shumway Capital Partners

equity-focused SCP Atlantic Fund

was stung both by down markets

in May and June and then again

in July.

Highelds co-founderRichard Grubman to retireRichard Grubman, famous on

Wall Street for having been

cursed out by Jeffrey Skilling on

an earnings call, is retiring from

Highelds Capital Management,

the rm he co-founded in 1998.

Passport raises $30 millionfrom California pensionPassport Capital has won a $30

million long/short equity

mandate from Californias San

Bernardino County EmployeesRetirement Association.

Cerberus shops newmortgage fundCerberus Capital Management is

trying to entice investors with a

new mortgage hedge fund,

Cerberus Mortgage

Opportunities.

PSAM launches rstUCITS fund on MorganStanley platformNew York-based alternative

investment manager,

P Schoenfeld Asset Manage-

ment, is running the rst

UCITS fund on Morgan

Stanleys platform FundLogic.

Hufton and Wong to replaceDyson on SR Europe fundSloane Robinson has two new

co-managers on its SR Europe

long/short equity fund, following

news that Rupert Dyson is

leaving the rm and taking a

break from the industry.

Jabre launches newUCITS vehicle

Jabre Capital Partners, the

investment rm headed by

legendary convertible andequity manager Philippe Jabre,

is gearing up to manage a

second fund in an onshore

UCITS III format.

GLG reports H1 lossesGLG Partners has reported a GAAP

net loss for the second quarter

ended June 30 of $74.6 million.

Merrion considers new AsianUCITS vehicleMerrion Investment Managers,

the Dublin-based asset

management group, may

launch an Asian or emerging

markets UCITS hedge fund to

complement its European

fund.

Northern Trust capitaliseson growth in Asian assetservicing spaceNorthern Trust, one of the

largest hedge funds and fund of

funds administrators globally

with $86 billion under

administration, is strengthening

its Asia franchise by capitalising

on the emerging opportunities

in the regions asset servicing

space post-Madoff and the recent

nancial crisis.

Martin Currie rolls out JapanUCITS fundMartin Currie, the Edinburgh-

based manager overseeing $1.2

billion, is launching a UCITS

III-compliant product based on

the rms ARF-Japan Fund, a

long/short equity strategy

launched in 2000.

Maryland issues RFI foremerging managersThe Maryland State Retirement

and Pension System is

considering the creation of an

emerging manager fund of

hedge funds programme and

has issued an RFI to retain one

or more managers.

Former UVIMCO exec to leadnew alternative businessBruce MacDonald, former

director of asset allocation and

risk analysis at the University

of Virginia Investment

Management Company

(UVIMCO), is one of three

founding partners of Simple

Alternatives, a rm that plans

on offering a multi-manager,

hedge equity alternative

mutual fund in October.

Barclays Wealth beefs uphedge fund expertiseBarclays Wealth, an

investor in hedge funds

for its clients, has expanded

its alternative investment

origination and distribution

teams with a number of

senior hires.

Latest WEEKLYnews

Compiled byDamian Alexanderdalexander@hedge undintelligence.com

Research and data teamManager: Damian AlexanderAmericas: Amal RoblehEurope: Samantha MundayAsia-Pacic: Wing Yung LokFunds o Funds: Meera Mehta

Managing editor Neil Wilsonnwilson@hedge undintelligence.com

Production Michael Hunt/Simon Clarke

Group publisher John WillisManaging director John OrchardSubscription salesUSMatt Colbeckmcolbeck@hedge undintelligence.com+1 212 224 3568 Europe Jamie Austinjaustin@hedge undintelligence.com+44 (0) 20 7779 8041

Asia Robert Ballrball@hedge undintelligence.com+852 2842 6996

Customer Services+44 (0) 20 7779 [email protected] and directory salesUS/Europe Ian Sandersonisanderson@hedge undintelligence.com+44 (0) 20 7779 7339US/Europe James Bareldjbareld@hedge undintelligence.com+44 (0) 20 7779 7336Asia Robert Ballrball@hedge undintelligence.com+852 2842 6996 1473-3153

Email in o@hedge undintelligence.comTelephone +44 (0) 20 7779 7330Fax +44 (0) 20 7779 7331Published by HedgeFund Intelligence, Nestor House,Playhouse Yard, London EC4V 5EX

To receive your free subscription to Global Brie ing,please sign up at:www.hedge undintelligence.com/globalbrie ing.aspx

Disclaimer: This publication is or in ormation purposes only. It is not investment advice and any mention o a und is in no way an ofer to sell or a solicitation to buy the und. Any in ormation in this publication should not be the basis or an investment decision. EuroHedge does not guar-antee and takes no responsibility or the accuracy o the in ormation or the statistics contained in this document. Subscribers should not circulate this publication to members o the public, as sales o the products mentioned may not be eligible or suitable or general sale in some countries.Copyright in this document is owned by HedgeFund Intelligence Limited and any unauthorised copying, distribution, selling or lending o this document is prohibited.

Global Briefing Aug 2010

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