Index Flash

Hedge funds end 7 month winning streak, down 1.47%

Hedge funds end 7 month winning streak, down 1.47%

Hedge funds recorded negative returns in June ending their seven month winning run, as global markets 1 witnessed broad based declines during the month. The Eurekahedge Hedge Fund Index was down 1.47% in 2 June, outperforming the MSCI World Index which lost by 3.10% during the month. Key takeaways for the month of June 2013:

Hedge funds witnessed first losing month of the year, down 1.47% in June 2013 Japanese hedge funds outperformed underlying stocks, up by 0.15% in June and 17.38% year-todate Launch activity picks up with more than 300 funds launched so far in the year Eurekahedge is currently tracking more than 500 funds that have delivered over 15% year-to-date and 250 funds that are up by over 20% year-to-date Distressed debt funds end 11-month winning run after gaining 21% from June 2012 to May 2013 CTA/Managed Futures funds in negative territory for the year, down 1.35% year-to-date

Regional Indices June witnessed a continuation of downside momentum from the end of May as markets reacted adversely to speculation about a slowdown in the FEDs bond buying operations. The S&P 500 index was down 1.50% while the FTSE100 and Hang Seng index were down 5.58% and 7.10% respectively. Asia ex-Japan markets were the worst hit as lacklustre manufacturing data from China continued the flow of dreary macroeconomic numbers from China. Japanese stocks proved to be more resilient compared to their counterparts - with the Nikkei 225 and Tokyo Topix down 0.71% and 0.17% respectively. Towards the end of the month, market reaction to the US Federal Reserves indicated framework was downplayed as both the scale and pace of the slowdown in asset repurchase is contingent upon the US economic recovery which is still far from complete. A further boost of confidence was added to the markets as the European Central Bank re-affirmed the continuation of its loose monetary policy. All major hedge fund investment regions, with the exception of Japan, finished in negative territory for the month. The Eurekahedge Asia ex-Japan Hedge Fund Index saw the largest decline among all regional mandates, down by 4.63%. It still managed to outperform the underlying markets as the MSCI Asia Ex Japan 3 Index dropped by 6.75% for the month. The seven month streak of positive returns for North American hedge funds also came to an end as the Eurekahedge North American Hedge Fund Index was down 0.10% (up 4.07% YTD) a significant outperformance to the S&P 500 which declined 1.50%. European hedge funds saw another month of dismal returns this year with the Eurekahedge European Hedge Fund Index down 1.16%. In contrast, the Eurekahedge Japan Hedge Fund Index was up 0.15% for the month, bringing its year-to-date returns at an enviable 17.38%. While Prime Minister Abe outlined the 3rd arrow of his economic policy, it did not do much to boost up the market and funds with low long exposures were the ones 1

Index Flash

Hedge funds end 7 month winning streak, down 1.47%

that performed well during the month while some managers with exposure to transport and industrials also reported gains. Strategy Indices All hedge fund strategies yielded negative returns in June. Multi-strategy hedge funds were the worst performer for the month with a loss of 2.20%, followed by long/short equities (down 1.66%) as the global equity markets witnessed broad-based declines. CTA/managed futures posted the second consecutive month of negative returns, down by 1.14% in June and 1.35% year-to-date.The S&P GSCI precious metals total return index fell 12.21% during the month while CTA managers also suffered losses in equity and bond futures.

Main Eurekahedge Indices

June 2013*

2013 2012 Eurekahedge Regional Returns Returns Indices

June 2013* -0.10 -1.16 -3.34 0.15 -2.94 -4.63 -2.13 June 2013* -1.42 -1.52 -1.80 -1.71 June 2013* -5.19

2013 2012 Returns Returns 4.07 2.18 -6.25 17.38 0.79 1.88 -1.18 7.83 6.64 5.07 6.03 10.89 12.42 10.40

Hedge Fund Index Fund of Funds Index Long-Only Absolute Return Fund Index Islamic Fund Index
Eurekahedge Strategy Indices

-1.47 -1.79 -5.01 -1.71

June 2013*

2.47 2.55 1.95 4.40

6.38 4.11

North American European

16.01 Eastern Europe & Russia 7.32 Japan

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

-0.46 -1.14 -0.41 -1.64 -1.54 -1.66 -1.58 -2.20 -0.75

June 2013*

Emerging Markets 2013 2012 Returns Return Asia ex-Japan 3.20 6.73 Latin American -1.35 1.37 Eurekahedge Global 9.47 14.02 Hedge Fund Indices 3.39 8.94 by Fund Size 1.83 10.70 Small (< US$100m) 5.10 7.82 Medium (US$100m 0.57 2.82 US$500m) 1.02 7.90 Large (> US$500m) 2.75 10.56 Billion Dollar Asia-Eurekahedge Indices Greater China

2013 2012 Returns Return 2.16 3.24 2.47 2.93 5.73 7.01 7.18 8.37

2013 2012 Returns Return

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

-2.02 -2.13 -2.12

1.11 1.36 1.17

5.93

2013 2012 Returns Return 4.81 13.38

India -5.48 -7.82 12.62 6.46 5.99 * Based on 37.82% of funds which have reported June 2013 returns as at 9 July 2013

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Index Flash

Hedge funds end 7 month winning streak, down 1.47%

promotions page, www.eurekahedge.com/promotions. Eurekahedge www.eurekahedge.com US office: +1 646 710 4898 (EST 9am to 6pm) International: +65 6212 0925
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Based on 37.82% of funds which have reported June 2013 returns as at 9 July 2013 MSCI AC World Index All Core (USD) 3 MSCI AC Asia Pacific Ex Japan Index All Core

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