November 2010 Asset Flows Update

Eurekahedge

Hedge funds were up 2.27%1 in October as better-than-expected corporate earnings and anticipation
of further quantitative easing resulted in sustained rallies in global equity markets. After witnessing the
fourth consecutive month of positive returns, the Eurekahedge Hedge Fund Index now stands at a
healthy 7.33% year-to-date October, with the sector poised to finish the year on a high note, as fears
of a double-dip recession subside.

Total assets under management grew by US$28.2 billion in October, bringing the size of the industry
to US$1.63 trillion, just above October 2008 level. Most of the gains were delivered by performance-
based growth, with managers making the most of the upside in underlying markets and notching up
hefty profits to the tune of US$18 billion. The sector also attracted capital for the fourth month running
with healthy net positive asset flows of US$10.2 billion.

Figure 1 shows the monthly asset flows across the hedge fund industry since December 2008.

Figure 1: Summary Monthly Asset Flow Data since December 2008

Below are the highlights for the month of October:

 Hedge funds attracted US$61 billion over the last 10 months.

 Total AuM stand at US$1.63 trillion, above October 2008 level.

 Assets in long/short equity funds crossed US$500 million.

 Hedge funds are up 7.33% YTD October, still ahead of global markets by 4.64%.

 Greater China funds rose 10.76% in the last two months.

 Strong launch activity was seen in the first three quarters, with more than 600 funds launched
in 2010 so far.
1
Based on 59.48% of the NAV for October 2010 as of 14 November 2010.

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November 2010 1
Most regional mandates witnessed net positive asset flows in October, with North American hedge
funds drawing the most inflows, gaining US$5.7 billion. The region's managers have consistently
attracted capital through 2010, witnessing nine consecutive months of positive flows – the net
allocations to North American funds in 2010 now stand at…

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