Index Flash

Hedge funds gain 2.15% in Jan 2012, the strongest monthly return since Dec 2010

Eurekahedge Hedge Fund Index witnessed positive returns in all regions and strategies for January
The Eurekahedge Hedge Fund Index was up 2.15% in January amid a strong resurgence in risk appetite, making it the strongest monthly return for the index since December 2010. The MSCI World Index gained 2 4.96% as markets overcame lingering concerns about the European debt situation and posted strong rallies. The capital-weighted Mizuho-Eurekahedge Index was up 1.80% during the month. Key highlights for January 2012:
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Hedge funds posted their best monthly returns since December 2010, gaining 2.15% in January 2012. All regions and strategies delivered positive returns in January. Hedge funds investing in insurance linked securities continue to post excellent profits with low volatility the funds have delivered annualised returns of 7% and a sharpe ratio of 2, over the last 6 years. Emerging market macro managers have gained 7.59% in the past 12 months. Small hedge funds outperformed large hedge funds in January 2012. Funds of hedge funds witnessed their best monthly return since December 2010. Early reporting funds indicate that between all the strategies, equity investing funds attracted the largest inflows in January 2012.

Regional Indices All regional mandates finished the month with positive returns as risk appetite was given a boost early in the month, with strong economic data from the US. Better than expected debt auctions in Western Europe added further steam to the rally while the US Federal Reserves announcement of keeping interest rates low into 2014 added further optimism in the marketplace. Managers investing in Eastern Europe & Russia and Asia ex-Japan witnessed the largest gains in January, up by 5.49% and 4.01% respectively. The emerging markets sector gained substantially from the positive sentiment that prevailed in January the RTS Stock Index was up 14.14% while the MSCI Asia Pacific Index gained 5.91% during the month. North American managers also posted strong profits in January, up 2.45%, on the back of strong corporate earnings and positive economic reports. The S&P 500 continued its positive run from the last week of December and gained 4.36% in January as the sentiment turned bullish. North American long/short equity managers captured most gains on offer by posting returns of 3.82%. European and Latin American hedge 1

Index Flash

Hedge funds gain 2.15% in Jan 2012, the strongest monthly return since Dec 2010
funds were also able to profit from the positive sentiment with returns of 2.48% and 2.5% respectively. Strategy Indices All strategic mandates delivered positive returns for January, with long/short equity managers leading the way. The Eurekahedge Long Short Equities Hedge Fund Index was up 3.11% during the month as managers across the regions benefitted from rallying equity markets. Value and growth investment themes were dominant during the month and long exposures to emerging market equities proved to be the most profitable; for example Indian equity investing hedge funds posted returns of 9.22% for the month. Other mandates with exposure to equities also witnessed excellent returns in January - the Eurekahedge Event Driven Hedge Fund Index was up 2.21% while the Eurekahedge Multi-Strategy Hedge Fund Index gained 2.61% during the month. Macro investing funds were up 2.16% in January with most of the gains coming from trend following strategies and global macro themes. Exposure to emerging market currencies were especially profitable for some managers while energy trading also delivered hefty returns for managers however short term systematic trading managers posted some losses during the months
Main Indices
Eurekahedge Hedge Fund Index Eurekahedge Fund of Funds Index Eurekahedge (Long-Only) Absolute Return Fund Index Eurekahedge Islamic Fund Index

January 2012*
2.15 1.86 5.75 2.59

2012 2011 Returns Returns

2.15 1.86 5.75 2.59 -4.10 -5.58 -14.32 -3.45

Regional Indices
Eurekahedge North American Hedge Fund Index Eurekahedge European Hedge Fund Index Eurekahedge Eastern Europe & Russia Hedge Fund Index Eurekahedge Japan Hedge Fund Index Eurekahedge Emerging Markets Hedge Fund Index Eurekahedge Asia ex-Japan Hedge Fund Index Eurekahedge Latin American Hedge Fund Index

January 2012*
2.45 2.48 5.49 0.93 3.45 4.01 2.50

2012 2011 Returns Returns

2.45 2.48 5.49 0.93 3.45 4.01 2.50 -0.89 -6.61 -20.72 -1.61 -8.44 -12.59 2.33

Strategy Indices
Eurekahedge Arbitrage Hedge Fund Index Eurekahedge CTA/Managed Futures Hedge Fund Index Eurekahedge Distressed Debt Hedge Fund Index Eurekahedge Event Driven Hedge Fund Index Eurekahedge Fixed Income Hedge Fund Index Eurekahedge Long/Short Equities Hedge Fund Index Eurekahedge Macro Hedge Fund Index Eurekahedge Multi-Strategy Hedge Fund Index Eurekahedge Relative Value Hedge Fund Index

January 2012*
1.77 0.14 1.96 2.21 2.12 3.11 2.16 2.61 1.93

2012 2011 Returns Returns

1.77 0.14 1.96 2.21 2.12 3.11 2.16 2.61 1.93 0.97 -2.74 -2.43 -4.68 1.14 -7.36 -1.46 -2.69 -0.27

Mizuho-Eurekahedge Indices
Mizuho-Eurekahedge Index - USD Mizuho-Eurekahedge TOP 100 Index - USD Mizuho-Eurekahedge TOP 300 Index - USD

January 2012*
1.80 1.34 1.63

2012 2011 Returns Returns

1.80 1.34 1.63 -2.09 1.99 0.22

* Based on 53.69% of funds which have reported January 2012 returns as at 14 February 2012.

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Index Flash

Hedge funds gain 2.15% in Jan 2012, the strongest monthly return since Dec 2010
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Based on 53.69% of funds which have reported January 2012 returns as at 14 February 2012. MSCI AC World Index All Core Local.