Index Flash

Hedge funds up 2.54% in March

April 2010

After a slow start to the year, hedge funds showed their strength in
March, witnessing robust positive results across all regions and
strategies. The composite Eurekahedge Hedge Fund Index advanced
2.54%1 amid significant movements in most underlying asset classes,
bringing the YTD figure to 2.16%. The MSCI World Index increased
5.93% in March and was up 2.74% YTD.

• Initial reports indicate positive net asset flows for March2 and and
US$16 billion net inflows for February.

• Distressed debt hedge funds climbed 7.35% YTD with 12 months

of consecutive positive returns, gaining 49.08% over this period.

• All regional and strategic indices reported positive returns both

for March and for the year.

Main Indices

Mar 2010 2010 YTD 2009

Index
Est1 Returns Returns
Eurekahedge Hedge Fund Index 2.54 2.16 19.60
Eurekahedge Fund of Funds Index 1.55 1.27 9.80
Eurekahedge Long-Only Absolute
7.02 6.72 46.95
Return Fund Index
Eurekahedge Islamic Fund Index 1.65 1.65 21.7

Regional Indices

Hedge funds across all regions delivered robust returns for March with
emerging markets funds leading the way. Managers allocating to Eastern
Europe and Russia did especially well, with the Eurekahedge Eastern
Europe & Russia Hedge Fund Index leaping to a strong 6.88%. Managers
allocating to Russia posted strong returns from their exposure to the
energy sector as well as to Russian equities while a surge in Eastern
European stocks also yielded high gains – the RTS Index was up 11.46%
while MSCI EM Eastern Europe Index was up 10.28% in the month.

Asia ex-Japan managers also enjoyed healthy returns in March, with the
Eurekahedge Asia ex-Japan Index posting 3.92%. Most of the gains were
delivered on the back of strong rallies in the underlying equity markets,
which were buoyed by positive economic data and upbeat sentiment –
the MSCI Asia ex-Japan Index was up 7.15% in the month.

1
 Index Flash

Hedge funds up 2.54% in March

Mar 2010 2010 YTD 2009

Index
Est1 Returns Returns
Eurekahedge North American Hedge
1.94 2.48 23.38
Fund Index
Eurekahedge European Hedge Fund
2.48 3.17 21.54
Index
Eurekahedge Eastern Europe & Russia
6.88 8.04 60.76
Hedge Fund Index
Eurekahedge Japan Hedge Fund
2.86 3.77 6.72
Index
Eurekahedge Emerging Markets
2.83 1.92 34.60
Hedge Fund Index
Eurekahedge Asia ex-Japan Hedge
3.92 1.39 37.41
Fund Index
Eurekahedge Latin American Hedge
1.09 1.34 26.94
Fund Index

Strategy Indices

All strategic indices were positive for March, with riskier assets delivering
the best returns. Net long exposures to equity markets were profitable,
with the S&P 500 returning 5.9% while the FTSE and DAX were up 6.1%
and 93.9%, respectively. The Eurekahedge Long/Short Equities Hedge
Fund Index gained 3.04% in the month.

Distressed debt managers were the best performers in March as they

continued their winning streak to 12 straight months by gaining 49.08%
on average over this time period. The Eurekahedge Distressed Debt
Hedge Fund Index was up 4.27% in March, bringing the YTD figure to
7.35%. Managers employing this strategy have delivered exceptional
performance recently, profiting from the continuing rally in the sector –
the Merrill Lynch High Yield Index was up 4.99% YTD.

Mar 2010 2010 YTD 2009

Index
Est1 Returns Returns
Eurekahedge Arbitrage Hedge Fund
1.92 3.13 23.60
Index
Eurekahedge CTA/Managed Futures
2.47 0.23 2.79
Hedge Fund Index
Eurekahedge Distressed Debt Hedge
4.27 7.35 34.98
Fund Index
Eurekahedge Event Driven Hedge
1.62 2.96 38.77
Fund Index
Eurekahedge Fixed Income Hedge
1.28 2.44 23.44
Fund Index
Eurekahedge Long/Short Equities
3.04 2.36 23.39
Hedge Fund Index
Eurekahedge Macro Hedge Fund
2.26 2.05 13.09
Index
Eurekahedge Multi-Strategy Hedge
2.29 2.17 21.20
Fund Index
Eurekahedge Relative Value Hedge
2.02 3.04 20.25
Fund Index

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2
 Index Flash

Hedge funds up 2.54% in March

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1
Based on 31.51% of the funds reporting their March 2010 returns as at 9 April 2010.
2
Latest asset flow numbers will be published on 20 April 2010 in the Eurekahedge March 2010
Asset Flow Report.

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