May 2011 Asset Flows Update

Eurekahedge

Introduction

Hedge funds continued to attract capital from investors in April with strong performance adding to
gains in total assets under management. The Eurekahedge Hedge Fund Index was up 1.58% 1
through April – a month marked with strong returns among underlying hedge fund strategies. The
MSCI World Index was up 1.84% 2 during the month.

Total assets under management crossed US$1.81 trillion as investors continued to allocate capital to
hedge funds. Updated April figures indicate that managers attracted a massive US$28.33 billion in
April – by far the highest inflow since June 2008. This brings the total net flows for the first four
months of 2011 to US$93.94 billion, exceeding the 2010 total of US$66.24 billion. Performance-based
gains stood at US$23.97 billion for April as most funds delivered good performance on the back of
favourable market conditions. March asset flows were also revised upward with gains to the tune of
US$23.85 billion.

Figure 1: Summary monthly asset flow data since December 2008

1800  40 

20 
Total assets in US$ billion

Asset flow in US$ billion
1600 
0 

(20)
1400 
(40)

(60)
1200 

(80)

1000  (100)
Dec‐08 Apr‐09 Aug‐09 Dec‐09 Apr‐10 Aug‐10 Dec‐10 Apr‐11
Performance‐based Growth Net Asset Flows Total Assets

Source: Eurekahedge

Key highlights for the month of April:

• Hedge fund assets increased by US$52.3 billion in April with net positive asset flows of
US$28.3 billion

• Total industry assets cross US$1.8 trillion, above September 2008 level

• Net flows in the first four months now exceed total...

1
Based on 80.65% of funds which have reported April 2011 returns as at 21 May 2011
2
The MSCI World AC Index All Core – Local Currency

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