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8/8/2019 Global Briefing October 2010
1/12
HEDGE FUND INDUSTRY GLOBAL NEWS ROUND-UP RESEARCH ABSOLUTE UCITS DATA
GlobalBriefingVolume 3 Issue 12 October 2010 A HedgeFund Intelligence publication
HedgeFundIntelligence
September ushers in a reversal of fortunesGLOBAL SUMMARY
September saw a reversal of Augusts bearish sentiment, when
a constant flow of poor macroeconomic data had dominated the
news, escalating investors fears of a double-dip recession and
causing an over-zealous sell-off.
Despite Septembers generally subdued economic data, it
was far from indicating a return to recession like the previous
month, as US data stabilised, calming recent fears. Markets were
supported further by comments from the Federal Reserve and the
Bank of England, which signalled a willingness to provide further
stimulus, if needed, with a second round of quantitative easing.
The economic outlook also improved for emerging markets,
particularly China, which saw an increase in imports and a rise in
its industrial production that surpassed expectations, indicating
that it was over the recent slowdown and reaccelerating.
Hedge fund managers had one of their best months in recent
years with the HedgeFund Intelligence Global Index Composite
up 2.20% and HedgeFund Intelligence Global Index Equity
up 3.28%. Unlike August, when markets fell, September saw
managers underperform the surge in local bourses, with the S&P
500 gaining almost 9%, and the F TSE (up 6.19%), DAX (up 5.13%),
Nikkei (up 6.18%), Hang Seng (up 8.87%) and MSCI The World
Index Net (up over 9%) all gaining.
Currencies became a hot topic again last month as growing
emerging economies saw inflows strengthening their currencies,
Japan move defensively to suppress the yen and an increase in
rhetoric from the US over the value of the Chinese renminbi.
CONTENTS1 Global summary
3 The Americas summaryEquities boast best September since 1939
4 Europe summaryHope returns as double-dip concerns fade
5 Asia-Pacific summaryAsian markets rebound with positive returns
6 Funds of funds summaryCommodities and equities perform the best
8 Absolute UCITS Latest UCITS III developments
9 Research Global hedge fund assets edge up to $1.87 trillion
11 Data Absolute UCITS continues to attract funds
12 Latest weekly newsFor more information please contact: Damian Alexanderemail: dalexander@hedgefundintelligence.com tel: +44 (0)20 7779 7361
Medians MeansStrategy Sep-10 YTD Sep-10 YTD
Equity 3.28% 2.31% 3.87% 3.59%
Macro 1.64% 4.56% 2.72% 4.65%
Managed Futures 2.20% 3.83% 3.41% 5.95%
Event Driven 2.41% 5.25% 3.92% 6.32%
Emerging Market Debt 1.79% 8.16% 1.96% 10.32%
Emerging Market Equity 4.89% 3.61% 5.65% 5.53%
HFI Global Composite 2.20% 4.11% 3.11% 4.93%
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
-50
0
50
100
150
200
250
300
350
Sep-10
Sep-09
Sep-08
Sep-07
Sep-06
Sep-05
Sep-04
Sep-03
Sep-02
Sep-01
Sep-00
Sep-99
Sep-98
GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx
GLOBAL COMPOSITE MEDIAN INDICES
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8/8/2019 Global Briefing October 2010
3/12
Equities boast best September since 1939
Covering the single manager hedge
fund industry in the Americas
HEDGE FUND STRATEGIESEquities Despite Septembers mixed macro-economic data, investors
grew more confident as fears of a double-dip recession receded and
there was raised expectation of a further round of quantitative easing by
the Federal Reserve. Gains were made in corporate bonds and dividend
paying equities, while funds with conservatively positioned portfolios
were unable to take advantage of the rally in equities, as stock prices
soared and the S&P 500 Index returned its best September in 71 years,
ending up 8.76%. US and Global Equity funds returned an estimated
4.07% and 2.34% respectively, while Tech funds returned an estimated
3.44%. Managers expect the November elections to influence the markets,
and are conservatively hedging portfolios to prepare for higher volatility.
Convertible and Equity Arbitrage Convertible funds were up 1.09%
bringing the year to date to 6.56%. Funds that performed well found the
surge in the equity markets led to outrights being better buyers, while
investors anticipated new issuance. Year-to-date performance is down
compared to the same time last year, when funds were up 41%, according
to the Absolute Return Convertible & Equity Arbitrage Index; managers
thus remain cautious on convertibles, but are adding opportunistically.
Credit Funds within the Credit space returned an estimated 1.70%
for the month, gains being made through long positions in bonds and
CDS. Short positions in Brazilian indices and Chinese banks contributed
to losses. Managers are targeting bonds with refinancing potential and
see an opportunity in high-quality loans and refinance candidates.
Commodities/CTAs Commodity-based funds and CTAs returned
2.82% and 2.21% for the month respectively. Following the Japanese
Governments intervention in the yen, many portfolios saw a reduction
in their long yen exposure to the US dollar to combat the increase in
currency volatility. In the commodities market, gains were made from
long positions in gold and silver as the continued weakness of the US
dollar led investors to seek a safe haven in the precious metals market.
Medians MeansStrategy Sep-10 YTD Sep-10 YTD
Mixed Arbitrage Index 0.89% 4.38% 0.67% 4.78%
Commodities Index 2.82% 1.00% 3.94% 3.52%
Converti ble & Equity Arbitrage Index 1.09% 6.56% 1.68% 7.85%
Credit Index 1.70% 8.61% 2.13% 10.96%
Distressed Index 1.60% 8.06% 1.44% 8.29%
Event Driven Index 3.56% 8.07% 4.55% 7.37%Fixed Income Index 0.93% 7.68% 1 .22% 8.09%
Global Equity Index 2.34% 2.17% 3.25% 2.90%
Latin American Debt Index 1.66% 5.84% 1.61% 5.82%
Latin American Equity Index 2.93% 7.00% 3.47% 8.67%
Macro Index 2.77% 5.92% 3.79% 6.31%
Managed Futures Index 2.21% 4.06% 3.48% 6.36%
Mortgage Backed Securities Index 2.20% 9.14% 2.10% 11.14%
Multi-Strategy Index 1.36% 4.51% 2.56% 4.54%
Technology Index 3.44% 4.55% -3.88% -0.01%
U.S. Equity Index 4.07% 2.40% 4.57% 5.18%
Absolute Return Composite Index 2.50% 5.27% 3.44% 6.14%
ABSOLUTE RETURN INDICES (EST)
%
S&P 500
MSCI World
Absolute Return Composite Index
Absolute Return Global Equity
Absolute Return U.S. Equity
-50
0
50
100
150
200
250
300
Sep-10
Sep-09
Sep-08
Sep-07
Sep-06
Sep-05
Sep-04
Sep-03
Sep-02
Sep-01
Sep-00
Sep-99
Sep-98
MARKET EVENTS
Bank of Canada raises interest rates for third time this year
Unemployment rate remains at 9.6%
Government passes Obamas Small-Business Bill
Dollar falls as Fed admits possibility of further quantitative easing
Senate delays vote on extending Bush tax cuts until after mid-terms
GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 3
ABSOLUTE RETURN MEDIAN INDICES VSMSCI WORLD INDEX AND S&P 500
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Hope returns as double-dip concerns fade
Covering the single manager
hedge fund industry in Europe
HEDGE FUND STRATEGIESEquities Equities had a strong month during July, with lessening fears
of a double-dip recession and improved economic data being released.
The EuroHedge Global Equity index saw an estimated gain of 2.85% for
September one of its best months for a year, while emerging-market
equity was also up, gaining 4.89% for the month, with a 5.35% return for
the year after oil and metal prices rose. Despite concerns over Irelands
banking issue, European equities still had a strong month, with the MSCI
Europe, DAX and FTSE up 5.31%, 5.13% and 6.19% respectively. The
French CAC also had a strong month, though was still down for the year
at -5.62% even after a boost of 6.43% for September. European hedge
funds benefited from their long positions in equities, yet underperformed
their benchmarks with a gain of 2.48% for the month and up the same
for the year so far, as short books affected their gains. Gains from long
positions in cyclical and growth stocks added to performance, while on a
sector basis, funds benefited from gains in energy, resources and utilities.
Managed Futures The EuroHedge Managed Futures Index continued
its positive performance from August with another gain of 2.13% for
September, pushing the return for the years first three quarters to 5.87%.
The months main contributor to performance was commodities, which
saw prices rise as the Fed hinted of more quantitative-easing techniques,
pushing the USD lower. Losses from long positions in fixed income such
as Euribor and European government bonds were offset with gains from
long positions in cotton and crops which saw weather conditions push
prices higher. As the EuroZone forecasted better-than-expected results
for 2011, the euro rose, causing a small loss for short positions. Further
gains came from energy as prices increased during the month.
Credit The EuroHedge Credit Index is fast becoming the best strategy
for the year, up 7.47% through to the end of September after another
estimated gain of 0.96% for the month. As interest rates remain low,
issuance in Europe and the US has continued to pick up through 2010,
as seen by BPs raising of $3.5bn bonds during September, as interest on
debt remains cheap. While Europe saw a surge in ABS deals, confidence
was boosted not only by the rally in equities but central banks
admitting that quantitative easing may be used to revive the economy.
Medians MeansStrategy Sep-10 YTD Sep-10 YTD
European Equity USD 2.26% 1.19% 2.55% 1.77%
European Equity GBP 3.19% 2.37% 3.91% 3.52%
European Equity EUR 2.48% 2.48% 2.26% 2.97%
Macro USD 0.59% 3.81% 1.29% 4.07%
Fixed Income USD 0.45% 5.71% 0.86% 6.88%
Global Equity USD 2.85% 0.27% 3.78% 0.88%
Managed Futures USD 2.13% 5.87% 3.18% 6.10%Credit USD 0.96% 7.47% 1.38% 7.49%
Currency 1.74% 3.78% 2.54% 6.41%
Event Driven USD 1.08% 2.05% 3.43% 4.48%
Mixed Arbitrage & Multi Strategy USD 1.42% 3.84% 2.36% 6.77%
Equity Market Neutral &
Quantitative Strategies USD 0.32% 2.73% 0.47% 2.01%
Converti ble & Equity Arbitrage USD 1.69% 7.35% 1.49% 8.12%
Emergi ng Market Debt USD 1.69% 7.49% 2.10% 7.18%
Emerging Market Equity USD 4.89% 5.35% 5.13% 4.55%
EuroHedge Composite 1.83% 3.03% 2.47% 3.60%
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
-50
0
50
100
150
200
Sep-10
Sep-09
Sep-08
Sep-07
Sep-06
Sep-05
Sep-04
Sep-03
Sep-02
Sep-01
Sep-00
MARKET EVENTS
National Bank of Greece plans to raise 2.8bn in new capital Irelands cost of borrowing hits new highs in September Anglo Irish Bank sees bailout of 34bn Spains credit rating cut from AAA to Aa1 by Moody Unions strike across Europe
EUROHEDGE MEDIAN INDICES VSMSCI EUROPE
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GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 5
Asian markets rebound with positive returns
Covering the single manager hedge
fund industry in the Asia-Pacific
HEDGE FUND STRATEGIESSingle CountryAugust was a tough month and most AsiaHedge indices
were down for the month and also for the year to date. However, the
markets rebounded and all indices gained in September, bringing all
year-to-date figures back into a positive stance. Indian and Chinese equity
were the only gainers in August and both remained strong in September,
up an estimated 7.25% and 4.87%, respectively. The MSCI China was up
9.05% in September, as money continued to flow into Hong Kong and
China. Technology firms in Taiwan gained from global market strengths.
Asia excluding Japan Equity Asian equity was strong in September,in line with equities across the globe the recovery was led by better
macro economic data, which suggested that the US would not have
a double-dip into recession this year. ASEAN markets such as the
Philippines and Indonesia led the region and the MSCI Pacific ex-Japan
was up a staggering 12.96% for the month. Funds investing into Asia
excluding Japan equities did not come close to the MSCI benchmark;
however, they were still the best-performing strategy (up 7.38%).
Australian Long/Short Equity Sentiment towards equity markets
improved, as better US housing and manufacturing data and stabilising
signs in China contributed to a positive outlook. Domestically, the
federal election was finalised and economic data remained strong. The
Australian All Ordinaries was up 4.46% in September and Australian
equity funds were closely in line with the market (up 4.21%).
Outperforming sectors included materials and industrials, but
defensive sectors including REITS and healthcare underperformed.
Japanese Long/Short Equity September followed a similar trend to
August, as the market changed direction several times. Prime Minister
Naoto Kan won the Democratic Party of Japan presidential election,
which briefly sent the yen to a 15-year high. However, the Japanese
monetary authorities finally intervened in the international currency
markets and exporters were the major gainers. The Japanese market
ended the month up 3.91% (TOPIX) and 6.18% (Nikkei), with Japanese
equity funds (USD-denominated) gaining 0.99%.
Medians MeansStrategy Sep-10 YTD Sep-10 YTD
Asia including Japan USD 4.46% 2.92% 6.23% 4.20%
Asia excluding Japan USD 7.38% 5.55% 7.33% 7.11%
Chinese Equity 4.87% 0.11% 5.66% 1.17%
Indian Equity 7.25% 12.35% 7.27% 14.74%
Japanese Equity USD 0.99% 0.52% 0.93% -0.80%
Japanese Equity JPY 1.96% 1.16% 2.41% -0.32%
Australian Equity AUD 4.21% 0.31% 6.61% 4.57%
AsiaHedge Composite 3.02% 3.51% 4.05% 4.16%
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
-60
-30
0
30
60
90
120
150
Sep-10
Sep-09
Sep-08
Sep-07
Sep-06
Sep-05
Sep-04
Sep-03
Sep-02
Sep-01
Sep-00
EQUITY BENCHMARKSBenchmark index Sep-10 YTD
MSCI Pacific Free Net 7.62% 4.78%
MSCI Pacific ex Japan 12.96% 7.96%
MSCI China 9.05% 3.90%
China Shanghai Composite Index -1.07% -20.34%
Sensex 11.67% 14.91%
TOPIX 3.91% -6.92%
Nikkei 225 6.18% -11.16%
Australian All Ordinaries 4.46% -5.03%
Hang Seng 8.87% 2.22%
ASIAHEDGE MEDIAN INDICES VSMSCI PACIFIC FREE
MARKET EVENTS
BoJ intervenes in the currency market for first time since 2004 Chinas PMI improves for second month, indicating reaccelerating growth Malaysia announces an Economic Transformation Programme of
$444 billion over 10 years
Hong Kong dollar and RMB appreciates substantially Weak US dollar pushes up commodities
8/8/2019 Global Briefing October 2010
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Commodities and equities perform the best
Covering the global
fund of funds industry
HEDGE FUND STRATEGIESCommodities
The InvestHedge Commodities index is, at present, one of the top-
performing strategies, up 3.48% last month, despite reporting an
estimated year-to-date loss of 1.02% and underperforming the MCSI
World Index quite considerably (up 9.32%). With funds continuing to
report, this is subject to change in the coming weeks. Several weather
events and supply shortages pushed a number of markets sharply higher,
such as cotton, due to the flooding in Pakistan; wheat, due to the drought
in Russia; sugar, due to the dry weather in Brazil; and corn, due to the
dry weather in China. The price of gold was also significantly higher.
Equities
The InvestHedge Global Equity index is among the best-performing
strategies at the moment, with the mean up 3.11% and the median up
a further 2.62%, reporting a year-to-date gain of 1.75% and 1.28%
respectively. Equity markets rallied as economic data improved, leading
to a greater investor risk appetite. The US equity markets rose due to
optimistic manufacturing, jobs and housing figures while the European
equity markets were mixed, as Spains credit rating was downgraded
followed by Irelands banking system failing, but consumer confidence
grew as retail sales in the UK hit a high and German inflation slowed.
New funds
Signet Capital Management has launched its first UCITS-compliant
multi-strategy fund of funds following growing demand from their
institutional and private bank clients. The Signet Multi-Strategy fund
offers weekly liquidity and will allocate globally to approximately 15
hedge funds that follow the limits set in the UCITS III regulations. The
fund domiciled in Dublin is intended for investors in the UK, Europe
and Asia. The fund aims to produce consistent, low-volatility returns
largely uncorrelated with traditional markets, and will be flexible in
terms of strategy, always keeping the UCITS guidelines in mind.
Mandates
Funds of funds and single-manager hedge-fund mandates seem to be
on par with one another this month as the size of individual FoHF
mandates are smaller and single-manager fund allocations are growing,
according to the InvestHedge monthly mandate tables. A number of
searches for single-manager hedge funds are still underway in a variety
of strategies at US state pensions. CalPERS put another $105 million to
work in single HF fund allocations as New Jersey prepares to put in
more than $7 billion in hedge funds to meet a larger asset allocation.
Pensions in Norway and Korea added to both single manager and FOHF
mandates, while the state of Vermont made its foray via FoHFs.
Medians MeansStrategy Sep-10 YTD Sep-10 YTD
Arbitrage USD Index 1.38% 2.75% 1.38% 2.06%
Asian Pacific Fund o Funds Index 2.47% -0.03% 2.90% 0.07%
Asset Based Lending Index 0.28% 2.22% 0.28% 1.67%
Commoditi es Index 3.48% -1.02% 3.98% -0.45%
Distressed Index 1.55% 3.97% 1.76% 3.81%
Emerging Managers Index 2.01% 1.25% 2.02% 0.79%Emerging Markets Hedge USD Index 3.68% 4.67% 3.19% 3.14%
European Equity EUR Index 1.81% -0.22% 2.32% -0.06%
European Multi Strategy EUR Index 2.00% 1.28% 2.29% 0.95%
Fixed Income USD Index 2.01% 6.31% 2.08% 6.06%
Global Equity USD Index 3.11% 1.75% 2.62% 1.28%
Global Macro Currency USD Index 2.45% 2.69% 2.34% 3.15%
Global Multi Strategy EUR Index 1.15% 0.48% 1.68% 0.74%
Global Multi Strategy USD Index 2.13% 2.02% 2.10% 2.02%
Leveraged Global Multi-Strategy USD Index 3.09% 4.20% 3.00% 4.87%
US Equity Index 2.78% 1.85% 2.66% 2.50%
InvestHedge Composite Index 2.23% 1.94% 2.33% 1.84%
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 EURInvestHedge European Equity EUR
InvestHedge Composite
-40
-20
0
20
40
60
80
100
120
Sep-10
Sep-09
Sep-08
Sep-07
Sep-06
Sep-05
Sep-04
Sep-03
Sep-02
INVESTHEDGE MEDIAN INDICES VS MSCI WORLD
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Comprehensive databaseof global UCITS hedge funds
Industry news and analysis
New fund launches
Distributor profiles
Regulatory updates
UCITS index
Take a free trial to the serviceContact us today for a free no-obligation trial of the new service.
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Single-manager UCITS III news
Merchant Capital has lined up the third fund launch for its UCITS III
hedge fund platform. The Merchant Global Resources UCITS Fund is due
to launch later this month and will be run by experienced resources
investment manager Tal Lomnitzer.
HSBC Global Asset Management has rolled out a leveraged version of
its flagship macro absolute return portfolio, the HSBC GIF Global Macro
Fund. The fund is co-managed by Guillaume Rabault and Jim Dunsford,
and will invest across liquid markets in cash, equities, bonds and
currencies worldwide.
Martin Currie, the Edinburgh-based big boutique manager overseeing
$1.2 billion, is launching a UCITS III-compliant product based on the
firms ARF-Japan Fund, a long/short equity strategy launched in 2000.
Luxembourg-domiciled Japan Absolute Alpha will be managed by
John-Paul Temperley and Keith Donaldson.
GLG Partners plan to reopen one of its UCITS-compliant offerings to
new investment after receiving strong demand from investors. The firm
is creating an additional $250 million of capacity and will close the fund
again once this has been filled.
Swiss alternatives manager Salus Alpha is planning an Asia-focused
multi-strategy UCITS III fund to meet investor demand for a highly
liquid product centred on the fast-growing region. Salus Alpha is
partnering with an Asian fund manager to launch an existing multi-
strategy product on its UCITS III platform.
Quant Asset Management is planning to launch a UCITS III fund that
will follow the investment strategy of its offshore global equities fund.
The UCITS version of the British Virgin Islands-based Quant Global
Equities Fund is expected to launch in January 2011.
Multi-manager UCITS III news
Alternative asset manager Man has launched a UCITS III long/short
equity fund of funds domiciled in Luxembourg. The portfolio has
between eight and 12 managers including Marshall Wace, RWC Partners
and TT International.
Industry news
Assets under management for UCITS that use hedge fund strategies
have almost reached the $50 billion milestone. There are a total of 296
funds that have $49.2 billion AUM, according the latest research by the
HedgeFund Intelligence data team. They consist of 254 single-manager
hedge funds with combined assets of $46.1 billion, plus 42 funds of
funds with $3.1 billion assets.
Latest UCITS III developments
%
MSCI Europe - Net
HedgeFund Intelligence Global Index - CompositeHedgeFund Intelligence Global Index UCITS
EuroHedge European Equity EUR Index (Median)
EuroHedge UCITS European Equity Index (Median)
-50
-40
-30
-20
-10
0
10
20
30
Sep-10
Sep-09
Sep-08
Sep-07
UCITS INDICES VS EUROHEDGE EUROPEANEQUITY AND MSCI EUROPE
Medians Means
Strategy Sep-10 YTD Sep-10 YTD
Absolute UCITS European Equity Index 0.68% 0.31% 1.43% 2.14%
EuroHedge European Equity EUR Index 2.48% 2.48% 2.26% 2.97%
Absolute UCITS Single Manager Composite Index 1.02% 1.50% 2.26% 1.70%
HedgeFund Intelligence Global Index Composite 2.20% 4.11% 3.11% 4.93%
SEPTEMBER UCITS PERFORMANCE INDICES
EQUITY BENCHMARKSBenchmark index Sep-10 YTD
MSCI Europe Net 5.31% 1.77%
FTSE 100 (London) 6.19% 2.51%
DAX (Frankurt ) 5.13% 4.56%
AbsoluteUCITS
8/8/2019 Global Briefing October 2010
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After a rebound of some 10% buoyed by
strong performance during the second half
of 2009, assets in the global hedge fund
industry edged up at a much slower pace
during the first half of 2010. According to
our latest research, global assets were up a
modest 2% during the first half of this year
to reach a total of $1.866 trillion by the
beginning of July.
The latest numbers on global assets came
following a period of relatively flat
performance during the first half across the
hedge fund industry which implies that
any new inflows of assets must have been
more or less evenly matched by the pace of
investor redemptions.
Industry assets remain a long way below
their historic high of over $2.65 trillion set
during 2007 before the global financial
crisis took hold.As in previous years, the lions share of
global assets are managed in the United
States, with the 217 members of the
Absolute Return Billion Dollar Club aloneaccounting for combined assets of over $1.2
trillion. Globally, there are now 302 firms
that run hedge fund assets of $1 billion or
more, representing a combined total of$1.535 trillion a slightly higher propor-
tion than at the beginning of the year, and
continuing a trend whereby assets have
become ever more heavily concentrated
among the bigger firms. The top 10 firms
alone now control 15% of the global total.
New York remains the biggest single
centre of the industry, followed by London
which is still in second place. Assets in
standard European hedge funds did not rise
at all in the first half, though there was an
increase in onshore UCITS III-compliant
hedge funds to reach nearly $35 billion in
Europe (and nearly $50 billion in all)
which are not included in the totals here.
The rising centres include places in Asia
such as Hong Kong, where the number of
firms in the Billion Dollar Club jumped
from 6 to 10 in the first half of the year;
and in Latin America, where there are now
five firms with $1 billion or more in either
Sao Paulo or Rio de Janeiro.
Taken from a HedgeFund Intelligence
press release, London
GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 9
Global hedge fund assets edge up to $1.87tr
Research
0
300
600
900
1,200
1,500
Rest of the worldAsiaEuropeUS
$1,342bn
Assets$
bn
$382bn
$138bn
$67bn
Rest of world Africa $7bnRest of world Canada $20bnRest of world Latin America $40bn
Asia-Pacific funds managed in Europe $12bn
Asia-Pacific funds managed in the US $30bn
Asia-Pacific funds managed in Asia-Pacific $96bn
European funds managed by US firms $21bn
European funds managed in Europe $349bnOther hedge funds managed in the US $1,291bn
Total $1,866bn
The $1.87 trillion industry: where the assets are managed
Source: HedgeFund Intelligence Note: The figures shown here are for single-manager hedge funds only. They do not include or double-count money allocated to hedge funds
via funds of funds. Assets in funds of hedge funds are tracked separately byInvestHedge.
AUM $bn Number of % of total % of totalLocation firms assets fundsNY, USA 706.44 124 46.03% 39.49%London, UK 238.82 52 15.56% 16.56%CT, USA 168.1 25 10.95% 7.96%CA, USA 70.03 16 4.56% 5.10%MA, USA 89.48 12 5.83% 3.82%Hong Kong 13.47 10 0.88% 3.18%
TX, USA 25.59 8 1.67% 2.55 %NJ, USA 25.32 5 1.65% 1.59%Sydney, Australia 19.67 5 1.28% 1.59%MN, USA 16.53 5 1.08% 1.59%Singapore 6.15 5 0.40% 1.59%IL, USA 22.05 4 1.44% 1.27%Paris, France 15.39 4 1.00% 1.27%Hamilton, Bermuda 11.22 4 0.73% 1.27%Stockholm, Sweden 14.34 3 0.93% 0.96%WI, USA 9.85 3 0.64% 0.96%Rio de Janiero, Brazil 5.13 3 0.33% 0.96%Toronto, Canada 4.14 3 0.27% 0.96%Tokyo, Japan 3.92 3 0.26% 0.96%GA, USA 11.84 2 0.77% 0.64%PA, USA 11.79 2 0.77% 0.64%So Paulo, Brazil 10.31 2 0.67% 0.64%
Other 35.28 14 2.30% 4.46%Total 1,534.86 302* 100% 100%
The global billion dollar club: July 2010
Source: HedgeFund Intelligence *De-duplicated to account or groups with more than one of cial location
8/8/2019 Global Briefing October 2010
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The worlds leadinghedge fund database
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and research, subscribers can benefit from a unique
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BiggerWith over 13,000 funds listed in the database, HedgeFund Intelligence provides
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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.
ClearerThe 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
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8/8/2019 Global Briefing October 2010
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GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 11
The Hedgefund Intelligence data and research team
added 173 UCITS funds to the database during
September, as we saw the launch of Absolute UCITS
our online news offering dedicated to UCITS funds.
In total, the team added 208 funds to the database
during the month, with EuroHedge adding an
additional 15, Absolute Return + Alpha adding 10
and AsiaHedge and InvestHedge adding 8 and 2respectively. The majority of funds added were
either based in the US, London or Singapore.
In total, 55 funds were liquidated in the database
during September. Absolute Return saw the greatest
number of funds close, with 19, followed closely by
EuroHedge at 18. InvestHedge and AsiaHedge saw
10 and 8 respectively. Our Absolute UCITS database
also saw a liquidation last month, with one fundnoted as closed. On the single-manager side, over
half of the funds noted as liquidated in the
database during September closed within 2010. No
specific strategy dominated but a number of equity
strategies saw liquidations throughout September.
Hedge funds had one of their strongest months during
September posting an estimated gain of 2.20% for the
month, the strongest gain since May 2009. While 83%
of single-manager hedge funds, which have reported to
our database so far are posting positive performance
during September with a handful of funds posting
strong double-digit gains, they still managed to
underperform their equity benchmarks with the
MSCI the World Index up 6.95% as small losses from
short positions detracted from gains in their long books.
Absolute UCITS continues to attract funds
Data
GlobalBriefing: DataEurope
Samantha Mundaydata@eurohedge.com
Americas
Amal Roblehdata@hedgefundintelligence.com
Asia-Pacific
Wing-Yung Lokdata@asiahedge.com
Fund of Hedge Funds
Meera Mehtadata@investhedge.com
UCITS
Amy Kirbyshiredata@absoluteucits.com
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 SEPTEMBER
NUMBER OF FUNDS LIQUIDATED DURING SEPTEMBER*
DISTRIBUTION OF PERFORMANCE
Numb
eroffundsaddedto
HFIdatabase
InvestHedge
Absolute Return Absolute UCITSAsiaHedge
EuroHedge
0
50
100
150
200
250
Sep-10Aug-10Jul-10Jun-10May-10Apr-10Mar-10Feb-10Jan-10
Numberof
fundsliquidated
InvestHedge
Absolute Return Absolute UCITSAsiaHedge
EuroHedge
0
10
20
30
40
50
60
70
80
Sep-10Aug-10Jul-10Jun-10May-10Apr-10Mar-10Feb-10Jan-10
%
0
20
40
60
80
100
NegativePositive
Sep-10
Aug-10
Jul-1
0
Jun-10
May-1
0
Apr-1
0
Mar-1
0
Feb-10
Jan-10
Dec-0
9
Nov-09
Oct-0
9
* de-duped to exclude multiple share classes
8/8/2019 Global Briefing October 2010
12/12
GlobalBriefingis a free monthly publication To subscribe please go to www.hedgefundintelligence.com/globalbriefing.aspx October 2010 12
GlobalBriefing
AR Symposium workshops to
feature Utah pension exec
The full schedule for workshop
sessions at the forthcoming AR
Symposium, to be held at the New
York Athletic Club on November
2-3, has now been finalized
adding a range of important
topics and speakers from many
more major firms to the program.
Everest Capital partners with
RiceHadley Group
Everest Capital, a $2 billion global
macro hedge fund in Miami, has
formed a strategic partnership
with the RiceHadley Group, the
consulting firm founded by
former U.S. Secretary of State
Condoleezza Rice and former U.S.
National Security Advisor
Stephen Hadley, according to a
letter the firm sent to investors.
September rally pushes all
strategies into the black
With almost a quarter of
Septembers performance in so far,
it appears that hedge funds in the
U.S. are posting positive returns,
with the AR Composite Index up
an estimated 3.33%, compared to
Augusts gain of 0.42%.
Lombard Odier taps Bataillon
to run l/s European equity
Lombard Odier Investment
Managers, the institutional
asset management arm of the
200-year-old Swiss private bank
Lombard Odier Darier Hentsch
& Cie, has made a significant
addition to its hedge fund
operation with the hire of
experienced long/short equity
manager Marc Bataillon and his
team from Selectium Europe.
GLG starts UCITS version of
Atlas Macro fund
GLG Partners is launching a
UCITS-compliant version of its
high-performing GLG Atlas
Macro Fund, managed by
portfolio manager Driss Ben-
Brahim and chief investment
strategist, Jamil Baz.
Polar recruits AXA
Framlington global EM team
Polar Capital has announced
the formation of a global EM
franchise with the hiring of
an experienced three-strong
team from AXA Framlington
comprising William Calvert,
Ming Kemp and Neil Denman.
Hong Kongs DragonBack
morphs into fund platform
Hong Kong-based DragonBack
Capital is transitioning to a
platform provider for hedge
fund managers in Asia and
overseas following the recent
closure of its two strategies
and the departure of its
investment team, led by
co-founder Matthew Barnett.
LaCrosse buys BoAMLs global
fund admin business
LaCrosse Global Fund Services
has finalised its acquisition of
Bank of America Merrill
Lynchs $6 billion global fund
administration business the
latest spin-off deal of its kind
from a multibillion-dollar
financial institution.
Marble Bar rethinks Asia
strategy post closure of fund
London-based Marble Bar
Asset Management, the
long/short-focused firm,
is said to be examining
the way forward for its
Singapore office after the
closure in June of its MBAM
Pan-Asian Fund.
Plan sponsors monitor
funding status, Mercer says
Current markets present
challenges to trustees, but
it seems most are focused
on funding issues and
de-risking of their portfolio,
according to a recent survey
released by Mercer.
ABN Amro teams up with
Lyxor for hedge funds
ABN Amro Private Banking
and Lyxor Asset Management
have entered into a partner-
ship for hedge fund solutions,
enabling ABN Amros private
bank to offer its clients access
to a wide selection of Lyxors
managed account-based
hedge fund products.
Albourne grows team
exponentially
Albourne Partners, whose
clients have now placed more
than $200 billion among 1,500
hedge funds, has dramatically
grown its team and anticipates
another 10 hires before year end
in line with its commitment to
track client growth with the
firms colleague growth.
Latest WEEKLY news
Compiled by head of research & data
Damian Alexander
dalexander@hedgefundintelligence.com
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 Wilsonnwilson@hedgefundintelligence.com
Production Michael Hunt/Loveday Cuming
Group publisher John Willis
Managing director John Orchard
Subscription sales
US Matt Colbeck
mcolbeck@hedgefundintelligence.com
+1 212 224 3568
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+44 (0) 20 7779 8041
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+852 2842 6996
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