Global Briefing Sept. 2010

8/8/2019 Global Briefing Sept. 2010

http://slidepdf.com/reader/full/global-briefing-sept-2010 1/12

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

GlobalBriefingVolume 3 Issue 11 September 2010 A HedgeFund Intelligence publication

HedgeFund Intelligence

Macro indicators fuel spread of anxiety GLOBAL SUMMARY

August, unlike July, offered no respite for markets as bourses

around the world fell as investors sold equities for the safety of

treasuries and gold. Markets switched their focus from July’s

strong micro results to discouraging macro indicators, which

caused renewed anxiety over a sluggish recovery and possible

double-dip recession.

The US, which remains a core concern for investors, saw a

steady flow of gloomy data with soft housing figures, poor retail

sales and business sentiment – all of which point to a fragile

recovery. Europe, while appearing stable, had mixed data with

a clear north/south divide still evident; China saw further

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

its currency hit a 15-year high.

Despite a challenging month, hedge funds did what they do

best in August, with managers performing relatively better than

their underlying benchmarks in the drawdown. The Hedge Fund

Intelligence Composite was up 0.29% on the month, far better

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

Seng (down -2.35%). Hedge funds are now up nearly 2% for the

year, while the MSCI World has fallen over 6%.

Looking ahead, it seems markets will remain nervous and

volatile until some macroeconomic clarity becomes evident, which

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

and that any demand gap left by fading government support can

be picked up by businesses and households.

CONTENTS 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 For more information please contact: Damian Alexander

email: [email protected] tel: +44 (0)20 7779 7361

Medians MeansStrategy Aug-10 YTD Aug-10 YTD

Equity -0.80% -1.07% -0.87% -0.40%

Macro 1.10% 3.07% 1.54% 2.38%

Managed Futures 2.01% 1.87% 2.98% 2.92%

Event Driven 0.13% 2.75% -0.51% 2.15%

Emerging Market Debt 0.73% 5.90% 0.76% 7.54%

Emerging Market Equity 0.14% -1.02% 0.24% 0.13%

Global UCITS 0.13% 0.52% -0.10% -0.54%

HFI Global Composite 0.29% 1.76% 0.27% 1.63%

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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Markets experience worst August in nine years

Covering the single manager hedge

fund industry in the Americas

HEDGE FUND STRATEGIESEquities Equity markets fell in August as weak macroeconomic data

reversed many of the gains made in July. Following the downward

revision of second-quarter GDP growth from 2.4% to 1.6%, investors

grew more cautious at the economy’s sluggish rate of recovery and

moved out of equities into fixed income. US and Global Equity funds

returned an estimated -1.77% and 0.10% respectively, while Tech

funds returned an estimated -1.43%. The S&P 500 Index ended the

month down -4.74%, its ninth reversal this year.

Credit The Absolute Return Credit Index returned an estimated 0.61%

in August, bringing the year to date to 7.06%. Managers capitalised on

some refinancing activity and gained the highest absolute returns during

the month through a number of positions across loans and bonds.

Gains were also made through short positions in the Retail and Media

industries. Managers within this strategy expect volatility to remain high.

Commodities/CTA Commodity-based funds and CTAs returned an

estimated 1.08% and 1.90% respectively. The decelerating rate of growth

allowed funds with long positions in government bond futures to perform

well. Crude oil and corn both proved to be profitable markets, with

managers taking advantage of the significant move within corn during August. Some funds that performed well were able to do so by correctly

anticipating movement in the energies and currencies markets, while

others benefited from the rally in US fixed-income futures.

Macro Funds within the Macro space returned an estimated 1.39%

during August, those that remained cautious in their outlook perform-

ing well despite the market’s reversal. Gains were made by managers

through long positions in the Brazilian Real and Japanese Yen. However,

the positive correlation of currencies such as the Canadian and Australian

Dollar with equities led to those with long positions in these currencies

suffering. As investors remain cautious, some managers plan to utilisetactical trading as a way to profit from short-term market dislocations.


Mixed Arbitrage Index 1.12% 2.83% 1.46% 4.27%

Commodities Index 1.08% -0.90% 2.07% 0.67%

Convertible & Equity Arbitrage Index 1.42% 5.41% 1.54% 6.08%

Credit Index 0.61% 7.06% 1.03% 8.76%

Distressed Index 0.24% 6.44% 0.39% 7.12%

Event Driven Index 0.00% 4.36% -0.83% 2.52%

Fixed Income Index 0.90% 6.26% 0.98% 6.59%

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%

Macro Index 1.39% 3.45% 1.77% 2.62%

Managed Futures Index 1.90% 1.97% 3.00% 3.17%

Mortgage Backed Securities Index 0.50% 6.39% 1.19% 8.59%

Multi-Strategy Index 0.32% 2.76% 0.20% 1.59%

Technology Index -1.43% 0.81% 0.28% 4.04%

U.S. Equity Index -1.77% -1.67% -1.69% 0.57%

Absolute Return Composite Index 0.42% 2.70% 0.59% 2.71%

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

• Bernanke reveals Fed’s readiness to boost US economy

• Losses within housing sector impact on unemployment figures

• Retail investors continue retreat from equity markets

• Department of Commerce downgrades expected US growth figures

• SEC promises stricter overview and enforcement against Wall Street

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx September 2010 3

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


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Fears of a double-dip recession hit markets

Covering the single manager

hedge fund industry in Europe

HEDGE FUND STRATEGIESEuropean Equity The rally in equities of July continued into the first

week of August though, as weak economic data in the US was released,

markets sold off as fears of a double-dip recession intensified. In

Europe, conflicting data continued to be released with Germany at one

end of the spectrum reporting growth for Q2, while the outlook for

Greece and Ireland continued to remain bleak. European markets fell

during August with the CAC, DAX and MSCI Europe at -4.18%, -3.62%

and -2.16% respectively. The UK managed to outperform its equity index

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-

ticals were offset by long positions in financials and construction.

Managed Futures After three consecutive months of losses, the

EuroHedge Managed Futures Index posted an estimated median gain

of 2.84% for August. As investors moved away from risky assets, gains

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

gains from long positions in wheat – which saw prices rise over weather

conditions and short positions in natural gas, helped offset perform-

ance as the index pushed its return for the year so far to 3.83%.

Convertible & Equity Arbitrage With only one down month in the last

20, the EuroHedge Convertible & Equity Arbitrage Index posted anotherstrong month for August up an estimated 1.33% for a yearly return of

5.85% for 2010. As equities sold off, volatility increased. Convertible

bonds proved profitable even as the new issuance market remained

closed. Fixed income also outperformed, pushing credit markets higher.

Macro Fears rose during August over the economy, which pushed equity

markets lower and saw investors move to safe-haven assets such as gold.

Interest rates fell during the month, and the likelihood they will stay

low saw investors move to government bonds. Commodity prices fell

in August, though gains from currency – long positions in Yen and

short in Euro added to performance. The EuroHedge Macro Index postedan estimated gain of 1.16% for August, returning 3.08% for the year so far.


European Equity USD -0.07% -1.13% -0.33% -0.82%

European Equity GBP 0.16% -0.99% -0.51% -0.70%

European Equity EUR 0.00% 0.00% -0.19% 0.74%

Macro USD 1.16% 3.08% 1.21% 2.59%

Fixed Income USD 0.74% 5.54% 0.36% 5.98%

Global Equity USD -1.17% -2.79% -0.74% -3.06%

Managed Futures USD 2.84% 3.83% 3.60% 3.28%

Credit USD 0.93% 6.55% 0.97% 6.48%

Currency 0.01% 2.63% -0.98% 3.78%

Event Driven USD 0.77% 0.82% 0.48% 0.95%

Mixed Arbitrage & Multi Strategy USD 0.04% 2.49% -0.21% 4.40%

Equity Market Neutral &

Quantitative Strategies USD -0.14% 2.26% -0.58% 1.25%

Convertible & Equity Arbitrage USD 1.33% 5.85% 0.49% 6.38%

Emerging Market Debt USD 0.65% 5.76% 0.57% 4.78%

Emerging Market Equity USD -0.28% 0.84% -0.47% -0.18%

Absolute UCITS European Equity -0.38% -0.25% -0.38% 0.74%

EuroHedge Composite 0.28% 1.15% 0.23% 1.11%

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

• German Bund yields at all-time low

• ECB calls for bids to drain €60.5bn from Eurozone money markets

• UK job market slows to its lowest rate for 10 months in August

• Greece set to receive €9bn of EuroZone loans

EUROHEDGE MEDIAN INDICES VSMSCI EUROPE



Japan is worst-performing market in August

Covering the single manager hedge

fund industry in the Asia-Pacific

HEDGE FUND STRATEGIES

Australian long/short equity August was a tough month as the

reporting season and federal election outcome were the focus of the

month and the Australian All Ordinaries fell 1.52%. Despite falling

an estimated 1.09% in August, funds investing into the country

outperformed this benchmark. Economically sensitive sectors

including financials, materials and consumer discretionary fell for the

month, whereas defensive sectors like utilities and REITS gained.

Japanese long/short equity The market was highly volatile in

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

economic data. Exporters were also hurt by the strong yen, which

fluctuated wildly against the US dollar, as the BoJ showed lack of

action to intervene the currency market. Therefore, it is no surprise

that Japanese long/short equity funds were the worst performers in

August, falling an estimated 2.12% (USD class) and 2.61% (yen class).

Asia excluding Japan equity Despite encouraging domestic economic

and trade data, most Asian markets fell in August. The strong market

momentum from July faded as data from the US worsened and the

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 was the weakest sector. On the upside, smaller ASEAN markets once

again managed to gain, including Thailand, the Philippines and

Malaysia. Funds in this space fell an estimated 0.42% in August and

down 1.90% for the year to date.

Chinese long/short equity Fears rose over the US double-dip scenario,

which affected the market. The China A share market finished flat in

August, but is still down 19.48% for the year to date. Within China,

growth and imports appeared to slow and as further tightening policies

in the property market continued, Hong Kong fell for the month (down

2.35%). Despite the negative news, Chinese equity was the best-perform-ing strategy in August, gaining an estimated 1.49% median return.


Asia including Japan USD 0.62% -1.22% 0.33% -1.80%

Asia excluding Japan USD -0.42% -1.90% -0.07% -0.32%

Chinese Equity 1.49% -3.69% 1.06% -3.93%

Indian Equity 1.11% 5.08% 0.78% 7.05%

Japanese Equity USD -2.12% -0.80% -2.41% -1.79%

Japanese Equity JPY -2.61% -0.85% -3.16% -2.75%

Australian Equity AUD -1.09% -4.07% -0.84% -2.91%

AsiaHedge Composite -0.09% 0.57% -0.35% 0.08%

ASIAHEDGE INDICES (EST)

%

MSCI Pacific 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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EQUITY BENCHMARKSBenchmark index Aug-10 YTD

MSCI Pacific Free Net -2.17% -2.64%

MSCI Pacific ex-Japan -1.95% -4.42%

MSCI China -2.75% -4.72%

China Shanghai Composite Index 0.05% -19.48%

Sensex 0.58% 2.90%

TOPIX -5.25% -10.42%

Nikkei 225 -7.48% -16.33%

Australian All Ordinaries -1.52% -9.09%

Hang Seng -2.35% -6.11%

ASIAHEDGE MEDIAN INDICES VSMSCI PACIFIC FREE

MARKET EVENTS

• Yen surges to a 15-year high

• Singapore government unveils measures to cool the property market

• Taiwan explores trade agreement with Singapore

• China overtakes Japan to become world’s second-biggest economy

• First hung parliament in Australia in 70 years

• Kan’s position as leader of the Democratic Party of Japan under threat



Mandates pick up as pension funds restructure

Covering the global

fund of funds industry

HEDGE FUND STRATEGIESBest-performing strategy

The InvestHedge Global macro currency index was one of the

top-performing strategies in August, up 1.11%, reporting estimated

gains of 0.16% year to date and outperforming the MCSI World Index,

which was down -3.73%. Global macro managers capitalised on

rising bond prices and movements in the grain markets. With funds

continuing to report, this is subject to change in the coming weeks.

Worst-performing strategy

The InvestHedge Global Equity index was one of the worst performing

strategies last month, with the median down 0.42% and the mean

down a further 0.43% reporting a year-to-date loss of -1.34% and

1.26%, respectively. Equity markets suffered a fall in August as

markets reacted to the release of soft US economic data, with housing

sector, retail sales and business sentiment figures all pointing to

slowing growth, markets fell considerably resulting in the S&P 500

reporting losses of 4.74% for the month.

New funds

Credit Suisse has launched a UCITS III-compliant multi-strategy

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.

The Credit Suisse Solutions (Lux) Prima Multi Strategy fund will

invest in some 20 underlying managers, of which at least half will

be run by the same managers in their flagship global multi-strategy

fund SAPIC 98. The Luxembourg-domiciled fund will invest in

various alternative investment strategies in the liquid UCITS-

compliant universe including: equities, event-driven, convertibles,

macro, credit, managed futures, fixed income, emerging markets

and interest rates. The fund is open to both institutional and retail

investors and offers weekly liquidity.

Mandates

August was the month when funds of funds began to show a bit

of a comeback. The size of the individual mandates totalled $575

million, although not as large a figure as it would have been prior

to 2008, but multi-manager portfolios are once again finding

their niche as pension funds revamp their hedge fund programs.

In particular, emerging-manager funds of funds gained interest,

riding on the wave of New York State’s allocation over the summer

to Rock Creek. Roughly $3 billion in searches were announced over

the summer; while a number of US public pension plans begin to

search for hedge fund consultants for the first time and wind downasset-liability studies.


Arbitrage USD Index 0.26% 1.44% 0.21% 0.71%

Asian Pacific Fund of Funds Index 0.10% -2.35% 0.01% -2.66%

Asset Based Lending Index 1.50% 2.94% 1.90% 4.04%

Commodities Index 0.06% -4.61% 0.36% -4.38%

Distressed Index 0.07% 2.39% -0.21% 1.86%

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%

European Multi Strategy EUR Index -0.26% -0.27% -0.94% -1.47%

Fixed Income USD Index 0.51% -3.25% 0.48% 3.96%

Global Equity USD Index -0.42% -1.34% -0.43% -1.26%

Global Macro Currency USD Index 1.11% 0.16% 1.36% 1.00%

Global Multi Strategy EUR Index 0.13% -0.73% 0.09% -0.97%

Global Multi Strategy USD Index 0.18% -0.12% 0.11% -0.12%

Leveraged Global Multi-Strategy USD Index -0.27% 0.20% 0.08% 0.50%

US Equity Index -0.29% -0.58% -0.28% 0.21%

InvestHedge Composite Index 0.06% -0.33% 0.05% -0.55%

INVESTHEDGE INDICES

%

MSCI The World Index – Net

InvestHedge Leveraged Global Multi-Strategy USD

InvestHedge Global Multi-Strategy USD

InvestHedge Global Equity USD

InvestHedge European Multi-Strategy EUR

InvestHedge European Equity EUR

InvestHedge Composite

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INVESTHEDGE MEDIAN INDICES VS MSCI WORLD



• Comprehensive database of global UCITS hedge funds

• Industry news and analysis

• New fund launches

• Distributor profiles

• Regulatory updates

• UCITS index

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AbsoluteUCITS



Single-manager UCITS III news

• Threadneedle has announced plans to launch a new UCITS III-

compliant UK long/short equity fund. The Threadneedle UK Absolute

Alpha fund will apply the same strategy as the UK Crescendo fund

and will be managed by Mark Westwood and Chris Kindler.

• GAM has launched its first market-neutral credit fund, in collaboration

with San Francisco-based credit manager DCI. GAM Star Diversified

Market Neutral Credit is a UCITS III fund that will use DCI’s quantitative

approach to invest in a diversified long/short portfolio, predominantly

focused on investment grade credit.

• Liechtenstein-based managed futures firm Qbasis Invest is launching

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.

• 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.

The York Lion Merger Arbitrage Liquidity Fund UI is one of the first

global merger arbitrage strategies in a UCITS-fund format in Europe.

• New York-based alternative investment manager P Schoenfeld Asset

Management is running the first UCITS fund on Morgan Stanley’s

platform FundLogic. The fund, MS PSAM Global Event UCITS, is

domiciled in Ireland, has weekly dealing and uses a global event-

driven investment strategy.

Multi-manager UCITS III news

• 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

varies between six and 20, depending on asset class.

• Signet Capital Management, a $1.4 billion fund of funds, has launched

its first UCITS-compliant fund in response to growing demand from its

institutional and private bank clients. The Signet Multi-Strategy Fund

offers weekly liquidity, and will allocate globally to approximately

15 hedge funds that follow limits set in the UCITS III regulations.

• Axa Investment Managers is planning to launch its first fund of

UCITS hedge funds in the first quarter of next year. The fund will

mostly invest in equity, fixed income and currencies, and less so in

distressed assets because they are less liquid.

• The London-based fund of funds, Key Asset Management, is to

launch a UCITS III hedge fund-compliant product. Subject to regulatory

approval, the fund will launch in October and will seek to allocate toa broad range of underlying strategies.

Latest UCITS III developments

%

MSCI Europe - Net

HedgeFund Intelligence Global Index - Composite

HedgeFund Intelligence Global Index – UCITS

EuroHedge European Equity EUR Index (Median)

EuroHedge UCITS European Equity Index (Median)

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UCITS INDICES VS EUROHEDGE EUROPEANEQUITY AND MSCI EUROPE

Medians Means

Strategy Aug-10 YTD Aug-10 YTD

Absolute UCITS European Equity Index -0.38% -0.25% -0.38% 0.74%

EuroHedge European Equity EUR Index 0.00% 0.00% 0.16% -0.99%

Absolute UCITS Composite Index 0.13% 0.52% -0.10% -0.54%

HedgeFund Intelligence Global Index – Composite 0.29% 1.76% 0.27% 1.63%

AUGUST UCITS PERFORMANCE INDICES

EQUITY BENCHMARKS

Benchmark index Aug-10 YTD

MSCI Europe – Net -2.16% -3.36%

FTSE 100 (London) -0.62% -3.47%

DAX (Frankfurt) -3.62% -0.54%

AbsoluteUCITS



Despite being one of the toughest asset-

raising climates in its history, the new

fund launch space for Asia Pacific hedge

funds in 2010 appears to show surprising

strength, and interestingly enough, Hong

Kong emerges as the location of choice for

a majority of these funds during the first

half of the year.

The AsiaHedge New Funds Survey (based

on fund launches recorded and confirmed

by AsiaHedge), shows that new funds

managed to garner as much as $2.13 billion

in the first half of the year. If you compare

that to the $2.5 billion raised by new funds

over the whole of 2009, one can see the

evidence of a clear and continued interest

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

the assets raised by new fund launches are

probably to a large extent a result of

reallocation of assets by investors within

the region. Also, some of this is also the

residual effect of the asset raising and

marketing momentum started by several

of these new managers in late 2008 to 2009,

as well as the fact that many investors

were≈procrastinating in 2009 before finally

deciding to put their money to work.

Also, we need to differentiate here

between pure start-up launches and veteran

hedge fund managers making a comeback

by relaunching their strategies in slightly

more liquid and operationally slimmer

avatars. The latter make up a large chunk

of players among the top 10 launches of

1H 2010. Examples include former Abax

co-founder Chris Hsu’s Kilometre Capital,

which at $170 million is the second-larg-

est launch of the season, ex-Gandhara

founder Davide Erro’s Turiya Capital

(launched with $150 million) and former

TCI head John Ho’s Janchor Partners

(launch size $100 million).

The remaining names in the top 10

category are also from well-established,

large managers, such as ADM Capital and

Income Partners, reinforcing our view that

assets are largely going to large-scale hedge

fund operations with long track records.

We also include Lei Zheng’s Hillhouse for

the first time in our New Funds Survey

which, with its $250 million launch of its

Gaoling natural resources fund, takes the

top slot among new funds in 1H 2010.

Launch sizes have also gone up so far

this year. The average size in 1H 2010

was $40 million, up slightly from $39

million in 2H 2009 and $17.04 million

in 2H 2008, when the Asian hedge fund

industry was at its nadir.

For the full AsiaHedge article, visit:

www.hedgefundintelligence.com/Article/2634824/

AsiaHedge-Industry-Analysis/Old-hands-show-

their-strength-in-Asia.html

GlobalBriefing is a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx September 2010 9

H1 2010 Asia-Pacific launches show strength

Research

N u m b e r o f f u n d s

A U M $ m

0

1,000

2,000

3,000

4,000

5,000

6,000

AUM $m

20

30

40

50

60

70

80

Number of funds

I H 2 0 1 0

2 H 2 0 0 9

1 H 2 0 0 9

2 H 2 0 0 8

1 H 2 0 0 8

2 H 2 0 0 7

1 H 2 0 0 7

2 H 2 0 0 6

1 H 2 0 0 6

2 H 2 0 0 5

I H 2 0 0 5

Source: AsiaHedge

Total number of Asia-Pacific funds versus AUM: 1H 2005 – 1H 2010



The world’s leading

hedge fund database

bigger

faster

clearertrusted

simple

HedgeFund Intelligence provides the most

comprehensive hedge fund, fund of funds, and UCITSdatabase available. Linked with our extensive newsand research, subscribers can benefit from a unique

combination of quantitative and qualitative analysis.

BiggerWith over 13,000 funds listed in the database, HedgeFund Intelligence provides

the most complete source of hedge funds, and funds of funds than any data

provider*. With three specialist regional products (Asia-Pacific, Europe and the

Americas) a global fund of hedge funds and a new UCITS Absolute Return

database, the HedgeFund Intelligence database will meet your needs.

FasterUpdated weekly with (practically) all data available within four weeks of month

end, the extensive research and editorial team ensure rapid inclusion of new

funds and updates on key data points.

Clearer

The database provides dedicated, clear and detailed information on hedge funds,UCITS Absolute Return funds and funds of funds (without unnecessary multiple share

classes). Links to news and analysis provide additional information on funds and over

70 non-investable indices are available to benchmark performance.

TrustedWith an experienced and dedicated specialist team gathering and verifying the data

to ensure accuracy, this database is used by many of the industry’s leading firms.

Simple A user-friendly interface allows effortless sorting by multiple criteria including

fund name, management company, performance, strategy, asset size and date of

inception. Compatible with Pertrac and fully downloadable into Microsoft Excel,

Access and other various third-party platforms.

*Comparative information taken from public sources.

AbsoluteUCITS

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

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



With the launch later this month of the online

dedicated UCITS alternative database – Absolute

UCITS, the HFI UCITS database saw a surge in new

funds added with 76 UCITS funds added to the

database during August. The majority of funds

were based out of Europe and nearly 30% of funds

were fund of UCITS funds. Meanwhile, we saw

36 traditional hedge funds added to the database

during last month, 21 within EuroHedge, 10 in

Absolute Return and 5 from AsiaHedge.

The HedgeFund Intelligence research and data

team liquidated 51 funds during August, with

InvestHedge liquidating 23, EuroHedge closing 20

and Absolute Return and AsiaHedge closing five

and three respectively. The majority of funds

liquidated were based in the UK with more than

20% of all funds being run out of London. No

particular strategy dominated, though there werea handful of European equity funds and emerging-

market equity funds closing during August.

While equity markets sold off during August,

hedge funds also had a challenging month, with

only 56% of funds posting positive performance

for August. The HedgeFund Intelligence

Composite index still managed to outperform

its equity benchmarks, up 0.23% for the monthcompared to the MSCI the World Index, which was

down 3.36% for the month. As funds remained

cautious, their short positions helped offset

negative performance from their long books.

Absolute UCITS proves a draw for database

Data

GlobalBriefing: DataEurope

Samantha [email protected]

AmericasAmal [email protected]

Asia-PacificWing-Yung [email protected]

Fund of Hedge FundsMeera [email protected]

UCITSAmy [email protected]

For more information on the database and subscriptions please contact Ian Sanderson on + 44 (0) 207 779 7339 or James Barfield 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 AUGUST

NUMBER OF FUNDS LIQUIDATED DURING AUGUST*

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

InvestHedge

Absolute Return Absolute UCITSAsiaHedge

EuroHedge

0

20

40

60

80

100

120

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

N u m b e r o f f u n d s l i q u i d a t e d

InvestHedge

Absolute Return Absolute UCITSAsiaHedge

EuroHedge

010

20

30

40

50

60

70

80

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

%

0

20

40

60

80

100

NegativePositive

A u g - 1 0

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

* de-duped to exclude multiple share classes



GlobalBriefing

Sandell’s assets fall as Castlerigg

logs uninspiring returns

Tom Sandell’s Sandell Asset

Management has lost over 57% of

its firmwide assets over the past

year. The firm is now managing

about $1.09 billion as of July 1

down from the $2.53 billion it

managed last summer.

Impala’s flagship hits a rough

patch in August

Robert Bishop’s Impala Asset

Management took a hit in August

in its flagship long/short equity

strategy. The Impala Fund was

down an estimated 4.30% in the

onshore, while the offshore was

down around 4.20%. The AR

Equity Index was down an

estimated 1.78% in August, as of

early September.

D.E. Shaw to give back moneyin multi-strategy fund

D.E. Shaw is making good on

redemption requests from

investors in its multistrategy

D.E. Shaw Composite fund after

almost two years of limited

withdrawals, and the firm

expects assets to drop signifi-

cantly as a result.

Ex-BlueCrest, GLG man

Walsh joins Lombard Odier

as EM debt head

Richard Walsh, a veteran of

BlueCrest Capital Manage-

ment, GLG Partners and Citi’s

EMSO hedge fund operation,

has joined Lombard Odier

Investment Managers as head

of emerging market debt.

GAM teams with US firm DCI

for UCITS launch

GAM has launched its first

market-neutral credit fund,

in collaboration with San

Francisco-based credit

manager DCI, with a strategy

that the firm describes as

“a unique offering in the

growing UCITS III universe”.

Insparo hires Stock as firm’s

chief strategistInsparo Asset Management, the

London-based frontier markets

investment firm focused on

Africa and the Middle East, has

hired emerging markets

veteran Graham Stock as chief

strategist. Stock joins the core

management team led by CIO

Mohammed Hanif.

Autumn musical chairs for

the Asian hedge fund space

A spate of new hires in the

hedge fund industry indicates

that firms are gearing up for

competitive growth amid

global economic recovery and

strengthened investor

confidence in Asia.

Certitude hires ex-RIM man

to head distribution

Sydney-based Certitude Global

Investments, formerly HFA

Asset Management, has

appointed Hector Ortiz as head

of distribution. He will focus

will on distributing Certitude’s

flagship products, which

include the Certitude Asian

Opportunities Fund.

Lux body names Asia head

to promote UCITS in regionIn a major sign that UCITS are

headed to Asia, the Association

of the Luxembourg Fund

Industry has appointed Ching

Yng Choi as head of its new Asia

office. Based in Hong Kong, she

will help raise awareness of

Luxembourg as a fund domicile

and promote UCITS in Asia.

Maryland issues RFI for

emerging managers

The 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 lead

new alternative business

Bruce 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 firm that plans

on offering a multi-manager,

hedge equity alternative

mutual fund in October.

Barclays Wealth beefs up

hedge fund expertise

Barclays 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 WEEKLY news

Compiled by head of research & data

Damian Alexander

[email protected]

Research and data teamAmericas: Amal Robleh

Europe: Samantha Munday

Asia-Pacific: Wing Yung Lok

Funds of Funds: Meera Mehta

UCITS: Jack Young

Managing editor Neil [email protected]

ProductionMichael Hunt/Loveday Cuming

Group publisher John Willis

Managing director John Orchard

Subscription sales

US Matt Colbeck

[email protected]

+1 212 224 3568

Europe Jamie Austin

[email protected]

+44 (0) 20 7779 8041

Asia Robert Ball

[email protected]

+852 2842 6996

Customer Services+44 (0) 20 7779 8610

[email protected]

Database and directory sales

US/Europe Ian Sanderson

[email protected]

+44 (0) 20 7779 7339

US/Europe James Barfield

[email protected]

+44 (0) 20 7779 7336

Asia Robert Ball

[email protected]

+852 2842 6996 1473-3153

Email [email protected]

Telephone +44 (0) 20 7779 7330

Fax +44 (0) 20 7779 7331

Published by HedgeFund Intelligence, Nestor House,Playhouse Yard, Londo n EC4V 5EX

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Global Briefing Sept. 2010