eVestment | HFN industry report: October 2011

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eA |HFN industry overview: October 2011

November 22, 2011 with 3,525 hedge fund products, reporting, HFN Hedge Fund aggregated Index was + 2.37% in October and-3.61% YTD 2011 while S and P 500 Total Return Index (S & P) was + 10.93% during the month and + 1.30% YTD.

Hedge fund industry October highlights
• Total industry assets increased approximately 1.01% to $ 2.484 trillion in October. Performance accounted for the majority of the asset increases and net investment flows were negative.
• Equity market exposure was the primary positive performance driver in October. Credit strategies has lagged, but were positive and raw material resources, especially those with high exposure to FX markets brought down the total hedge fund returns.
• The total performance reasons that month came from sectors and policies that were down significantly in Q3 and remains negative for the year, with the exception that the health-focused resources.
• UCITS structured hedge funds dragged the broad industry in October and is-7.15% YTD. UCITS products, virtually aggregated and long/short equity only has consistently crisis management HFN Hedge Fund Long/Short Equity and aggregate indices of 2011.

Shows that defensive positioning of equity focused funds, muted returns from non-irritable credit and relative value strategies and losses from managed futures funds, likely due to long exposures to the US dollar, resulted in overall hedge fund returns significantly lags the massive capital market increase. There are pockets of strong results, but in the months that October is not expected that the industry keep pace with the stock markets.

HFN developed outliers ratio to determine which sectors producing returns outside of their normal ranges. In October, illuminated mortgages relationship, managed futures and fixed income arbitrage strategies sub-sectors abnormally crisis management in October.

Regional benchmarks
A complete reversal from September produced all regional exposure specifications total positive return in October. Emerging market exposure was most positively influenced by the market exuberance with Russia and Brazil focused medium tip.

Funds investing in Russia received an average of 9.80% which reduced average losses in the lower-14.20% YTD. Russia focused fund performance 2011 has been poor, but the funds investing in India and in the MENA region has been worse-21.29% and-15.84%, respectively. After an average of + 6.27% in October, funds investing in Australian markets are only regional exposure are positive in 2011. Funds investing in Japan seems very defensively positioned in October. The group is much equity oriented, but 70% of reporting medium produced negative returns one month after the Nikkei rose + 3.31%.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of October 2011 was $ 2.484 trillion, an increase of 1.01% or 25.0 billion dollars from September.
• Performance accounted for an increase of 25.7 billion dollars and investors accounted for a net outflow of 770 million dollars.
• The most important growth/decline (% access change due to investor funding/redemption) was-0.03%, the closest to the flat reading then eA |HFN started tracking monthly flows in 2009.
• In the first 10 months of 2011, investors have put estimated 48.4 billion dollars to the hedge fund industry.

Despite the net outflow from investors in October, third in the last four months, it is more important sharp reversal of trend from Q3 when there were two months above average investor redemptions.

Some sector specific feeds
• The post natural disaster impact of net investor inflows into Japan funds seem to have disappeared. Investors withdrew more than the assigned Japan focused funds in October for the third month in a row and at a rate which has risen in each of the past three months.
• Flows to commodity focused and managed futures strategies jumped in October along with diversified sectors funds, giving defensive positioning from investors.
• Investor's redeemed more than assigned to mortgage related strategies for second month in a row and increased pace in October.
• Funds lies in Asia continued to attract assets in above average in October, but funds investing in Asian markets had their second month of above average outflow. Developments prior to September had been both classifications to attract new assets.

Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 1.04% in October and + 3.13% for the current year.
• Corporate and emerging market focused funds that performed best during the month, + 2.44% and + 1.57%. Distressed credit funds were + 2.25%, underperforming broadband needy universe that was + 3.01% in October.
• Fixed Income Fund's assets rose 0.23% in month to 671.8 billion dollars, but the increase was solely performance driven. Investors redeemed NET 4.44 billion dollars during the month.

Equity capital (EQ) strategies
• The average return of all equity focused strategies was + 3.90% in October and-5.13% YTD.
• Funds with a bias towards value investing most participated in the equity market rally, rising an average of + 6.46%.
• Equity assets increased approximately 3.15% to 795.6 billion dollars in October, but investors redeemed NET 3.87 billion dollars during the month is still a heightened pace.

Raw materials and strategies for Foreign Exchange (FX)
• Natural resource specific commodity strategies was + 1.90% in October and + 1.94% YTD.
• Agriculture funds was + 2.32% during the month, and metals markets funds returned an average of + 0.71%. The two differ on the basis of YTD returns an average of + 6.94% and-15.43% respectively.
• Funds targeting financial futures and FX markets were both closed in October,-1.58% and-1.85%, respectively.

Summary analysis
October's rally was a sharp reversal of the previous two months trend and subsequently represented the hope that the European sovereign situation would have a resolution in sight with the announcement of the size and scope of the EFSF. Punctuated by Spain's sub par bond auction, November seems to be a return to reality and some of the trends prevailing in Q3, namely weak equity markets and a strong US $. These environments again likely will favor relative performance of the equity strategies in their respective markets, credit strategies will again likely to outperform stocks and global macro managed futures strategies will be mixed, but mostly positive, if they weren't shaken Webcast currency reversal. At this rate, it is likely it will be his second negative year total returns in the last four digits, the first time in its relatively short history.

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Where Are The Women In The Industry?

AppId is over the quota
AppId is over the quota
According to the 2010 U.S. Census, while the number of working women have surpassed that of men, the hedge fund industry have yet to reflect that statistic.

Women only manage about 3% of the nearly $2 trillion industry, according to a recent study, but they get their due in a Business Insider article this week.

The spotlight is shone on such stars as Renee Haugerud, founder of New York-based fund Galtere, who transformed her $5 million firm into a $1 billion company; Leda Braga, president of BlueCrest Capital Management, who manages an astonishing $8 billion alone in her fund; and Elena Ambrosiadou, founder of Cyprus-based hedge fund IKOS Asset Management, who runs nearly half of the company's $2.5 billion assets under management.

Go to Business Insider article

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eVestment | HFN Industry Report: September 2011

AppId is over the quota
AppId is over the quota
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eA|HFN Industry Overview: September 2011

On October 21, 2011 with 3,168 hedge fund products reporting, the HFN Hedge Fund Aggregate Index was -3.09% in September and -5.58% YTD 2011 while the S&P 500 Total Return Index (S&P) was -7.03% during the month and -8.68% YTD.

Hedge Fund Industry September Highlights
•Total industry assets fell an estimated 2.92% to $2.463 trillion in September. Performance accounted for the majority of the asset decrease and net investor flows were negative for the month.
•Average hedge fund return in Q3 was -5.97% and investors withdrew an estimated net $19.3 billion. These represent the first quarterly loss and net redemption since the financial crisis.
•Falling commodity prices along with volatile equity markets and large losses from emerging market funds weighed most heavily on hedge fund returns in September.
•Fixed income strategies continued to outperform equity funds, the latter posting negative average returns for the fifth consecutive month and falling -9.34% in Q3 vs. -1.39% for FI strategies.
•Mortgage sector funds posted their second consecutive aggregate decline and their worst return monthly since November 2008, however the HFN Mortgages Index was +9.28% through Q3 2011.

High volatility across most major markets was the norm in September caused primarily by the ongoing sovereign crisis in Europe and worries over the size and timing of the EFSF bailout fund. The resulting reduction of exposures to risky assets during the month appeared to benefit FX strategies and funds focused on government bonds. Their aggregate returns were +1.88% and +1.12%, respectively, during the month.

HFN developed the Outlier ratio to determine which sectors are producing returns outside of their normal ranges. In September, the ratio highlighted emerging markets as a sub-sector which was hit particularly hard with their worst performance since October 2008.

Regional Benchmarks
No regional specification produced aggregate positive returns in September. Emerging market exposures were most negatively impacted. Funds investing in Russia lost an average of -13.01% which is bad, but not nearly the -28.20% decline seen in October 2008. Conversely, losses from funds investing in Brazil and China were nearly on par with their declines during the financial crisis. Only funds investing in developed European markets and in Japan lost less than 1% on average during the month, -0.38% and -0.91%, respectively.

Performance from funds investing in developed European markets was relatively good in September. The Stoxx Europe 600 Index was -4.74% during the month compared to the median return from equity strategies focused in the region of -0.95%; the HFN Long/Short Equity Index was -4.14%. Investors continued to withdraw assets from developed Europe funds at an above average rate in September.

Monthly Asset Flow Estimates
•Total estimated hedge fund assets at the end of September 2011 were $2.463 trillion, a decrease of -2.92%, or $74.1 billion from August.
•Performance accounted for a decrease of $59.5 billion and investors accounted for a net outlfow of $14.5 billion.
•The core rate of growth/decline (% asset change due to investor allocations/redemptions) was -0.57%, the second monthly decline of Q3 2011.
•There was a net investor outflow of $19.3 billion in Q3, the first quarterly outflow since Q1 2009. Redemptions were nowhere near the scope of that quarter when the industry lost an estimated $215 billion.

With increased volatility and performance losses emerging, investor flows began to slow in May 2011 and eventually shifted to net redemptions in July. The net outflow in September was the largest since April 2009. Allocations and redemptions have a history of lagging performance by a few months which would indicate net outflows may persist.

Sub-Sector Specific Flows
•Investors withdrew more than they allocated to Japan focused funds in September at a rate above the industry average. Developed Europe focused funds also faced net investor outflows for the fourth month in the last five.
•Emerging markets funds continued to lose assets at an above average rate in September. The group had an estimated $1.8 billion in net redemptions during the month and $4.8 billion in Q3.
•Investors appeared to be reducing exposure to credit strategies during Q3 as redemptions came at a higher rate than that of equity strategies for the first quarter since Q1 2010.
•Fixed income arbitrage and event driven strategies had among the highest rates of net outflow in September. Global macro was among the few strategies with net allocations.
•Asia domiciled funds continued to increase AUM due to net investor flow in September. The region has seen above average growth rates throughout 2011.

Performance Review
Fixed Income (FI) Strategies
•The average return of all fixed income focused strategies was -0.80% in September and +2.37% year-to-date.
•Government bond strategies again performed best during the month, +1.12% and corporate credit strategies were -2.17%.
•Fixed income fund assets fell for the third consecutive month, -2.37% in September to an estimated $676.4 billion. Investors redeemed a net $11.2 billion during the month.

Equity (EQ) Strategies
•The average return of all equity focused strategies was -4.42% in September and -8.68% YTD.
•Energy focused funds were down most, -8.10%, followed by small cap strategies and healthcare funds, -5.88% and -5.21%, respectively.
•Equity fund assets fell an estimated -5.03% to $769.5 billion in September. Investors redeemed a net $4.4 billion during the month.

Commodity and Foreign Exchange (FX) Strategies
•Broad natural resource commodity strategies were -0.53% in September and +0.26% YTD.
•Returns were again varied by sector. Funds investing in metals markets were -13.5% while agriculture funds were +0.03% during the month.
•Funds targeting financial futures again withstood market volatility relatively well, +0.13%, and FX strategies had some of the best overall performance in the industry, +1.88%.

Summary Analysis
The European sovereign debt crisis, operation twist embarked upon by the U.S. Federal reserve, evidence of China’s slowing economy and their housing market topping out were all stated by managers as contributors to the high level of volatility in September. October asset flows will be a good bellwether for the rest of the year as typically outflows would be expected with the continued performance losses. It is possible investors recall the missed opportunities following 2008 and currently invested capital may be more sticky, or new money may come in more quickly. Regardless, 2011 is shaping up to be the second year of annual performance losses on record for the hedge fund industry and investors will be hunting for investments which can match their rising budgetary needs.

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HFN industry report: July 2011

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HFN industry overview: July 2011

August 23, 2011 with 3,518 hedge fund products, reporting, were index HFN Hedge Fund total + 0.36% in July and + 0.78% YTD in 2011, while the S & P 500 Total Return Index (S & P) was-2.03% during the month and + 3.87% YTD.

Hedge fund industry highlights July:
• Total industry assets increased approximately 0.26% to $ 2.567 trillion in July. Performance accounted for the majority of asset growth. net investment flows were negative for the month.
• Commodity and FX exposures that the main part of the very positive performance in July. Funds with primary exposure to metals markets returned an average of over 8%.
• Fixed income strategies performed again, equity funds, return the latter posting negative average for the third month.
• Mortgage sector funds continued to produce above average yields and average monthly positive performance for 32 months.
• Japan focused funds posted its second consecutive positive overall results since the natural disaster in March and the Group showed slightly positive in 2011.

Global markets continued on the edge in July ahead of the bad economic and political news from the United States together with the European debt issues continued to spread throughout the region. These negative trends have been positive for certain currencies, including the AUD, CAD, CHF and JPY. Rally on U.S. Treasury markets was a blessing to high yields and EM debt strategies.

HFN developed outliers ratio to determine which sectors producing returns outside of their normal ranges. In July, it was the commodity and FX strategies surprising that positive and equity sector focused (real estate, economy, health care), perform well, worse than average.

HFN regional benchmarks
Funds investing primarily in Russia and Australia tend to most closely track the performance of some commodity markets (energy, agriculture and metals). In July, this resulted in Russia and Australia, producing the best regional results, + 2.39% and + 1.75%, respectively. Funds investing in China and over many regional markets in Asia performed above the average in July, with India is the exception.

The economies of both India and Brazil have faced with high inflation and must be counteracted by increasing certral bank lending rates. For Brazil focused funds, have the result in 2011 poorly performing stock markets, but strong credit markets. Brazilian equity funds returned an average of-3.20% in July and-0.23% in 2011, while fixed income strategies was + 1.90% in July and + 8.93% in 2011.

For the second month, focused Australia funds declined more than any other developed market, falling-3.03% in June. The Group continued to be hurt by the fall in commodity prices and again failed to surpass the ASX under a down month, previously a rarity for Australia focused funds.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of July 2011 was $ 2.567 trillion, an increase of 0.26%, or $ 6.8 billion from June.
• Performance accounted for an increase of 20.9 billion dollars and investors accounted for a net outflow of 14.1 billion dollars.
• The most important growth/decline (% access change because investors appropriation/redemption) were-0.55%, the first core decline since June 2010 and the largest since the beginning of 2009.
• Total the notorious AUM still 14% over the historically high in Q2 2008.

NET output in July was a continuation of the trend in Q2 marked three months of declining growth. Despite net outflow and the trend of decline, the industry still took in an estimated 55.0 billion dollar net new award 2011.

Some sector specific feeds
• The flow of assets to Japan focused funds resumed in July, but at a moderate pace compared with two months after the earthquake.
• The need was a jump in redemption from emerging market strategies in July, led by a large net outflow of funds investing in new Europe. Grandmothers focused resources also experienced a net reduction in AUM from investors.
• Commodity strategies had a payout for the second consective month and both capital and credit strategies investors experienced net outflows.
The Angel far above average industry returns in 2011, there was a net redemption of mortgage sector funds in July.
• On a policy level, had the only multi-platform strategy and convertible arbitrage NET investors allocations in July. Regulation d and option strategies, experienced the highest levels of depression.

Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 0.55% in July and + 4.16% for the current year.
• Emerging credit market strategies done best in July, + 0.87%, followed by mortgage sector funds, + 0.67%.
• Fixed income assets fell 0.82% in July to an approximated 690.5 billion dollars. Investors redeemed NET 7.8 billion dollars during the month.

Equity (EQ) strategies
• The average return all capital focused strategies was-0.29% in July and + 0.25% YTD.
• Natural resource sector funds led all others in July, + 1.42%. Health sector funds performed worst,-0.98%, followed by technology and financial sector funds-0.92% and-0.91%, respectively.
The assets of • Equity fell an estimated-1.06% to 834.8 billion dollars in July. Investors redeemed NET 8.6 billion dollars during the month.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was + 2.52% in July and + 0.59% YTD.
• Funds that invest in metals markets that went from the biggest losers in June to produce the highest returns in July, + 7.20-%. FX strategies increased an average of + 1.30%. Both groups have given negative average yields this year.
The decline in equity markets, funds targeted at financial futures rose + 2.57% in July.

Summary analysis
Effects of broad market uncertainty materialized in hedge fund flows in June and has been featured with meaningful exchange in July. The decisions to allocate or redeem generally is present or even a month earlier return data indicating Julius redemption is a reflection of May and June performance. Historically tend flows to reverse faster with positive return means August is likely to see net inflows on the back of Julius returns, but there is still a high degree of uncertainty in global markets which should keep inflows turned off.

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HFN industry report: June 2011

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HFN industry overview: June 2011

On July 22, 2011 with 3,560 hedge fund products, reporting, HFN Hedge Fund aggregated Index was-1.16% in June and + 0.42% of the current year 2011 while S & P 500 Total Return Index (S & P) was-1.67% during the month and + 6.02% YTD.

Hedge fund industry highlights June:
• Total industry assets decreased approximately 0.91% to $ 2.562 trillion in June. Performance accounted for the majority of the reduction of the supply and net investors funding was a good thing for the month.
• The primary factors that affect performance in may continued in June and downward pressure on raw materials and increased risk aversion hurt CTA/managed futures and equity strategies for the second straight month.
• Fixed income strategies generally performed equity funds, but both groups were down in June. Mortgage sector funds posted returns lowest since November 2008, but the average yield was still positive.
• Japan focused funds posted their first positive overall results since the natural disaster in March. Resources in Japan had the best collection of regional results in June.

Before had may and June, the industry had two losing months in a row since the economic crisis. European debt crisis is likely to have resulted in reduced exposures to risky assets and losses in May and June was the result of this deleveraging. Defensive sectors and volatility strategies have done during the journey. Index HFN healthcare was + 4.10% in the second quarter and the HFN short Bias Index was + 2.80% in June.

HFN developed outliers ratio to determine which sectors producing returns outside of their normal ranges. In June, mortgage-related strategies, but positive on average, had the second lowest average ratio which is an indication that lower levels of gains and losses arise from the group.

China focused medium was the biggest drag on emerging market returns in June and equity EM strategies lost much more than the EM fixed income funds during the month. Exposure to India produced the only positive average regional yields from EM funds in June, + 0.02%, but for the year India funds still lagging all others-9.45%. Brazil is the only EM-group to remain in positive territory through the first half of 2011, + 2.88%.

For the second month, focused Australia funds declined more than any other developed market, falling-3.03% in June. The Group continued to be hurt by the fall in commodity prices and again could not surpass ASX under a month that dun, formerly a rarity for Australia focused funds.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of June 2011 was $ 2.562 trillion, a fall of 0.91% or $ 23.6 billion in May.
• Performance accounted for a reduction of 28.1 billion dollar and investors accounted for a net inflow of 3.99 billion dollars.
• The core (% access change due to investor funding/redemption), growth was 0.17%, a decline in growth for the second month and second slowest growth rate in the past 12 months.
• Overall, the notorious AUM is now 15% during the historically high as in the second quarter of 2008.

The trend in Q2 was three months of declining growth. While investors continued to allocate more than was redeemed, moderated off. For the quarter investors to an estimated net 32.4 billion dollars for the year, a net of 75.3 billion dollars. This is much larger than either the first or second halves of 2010.

Some sector specific feeds
• The uptick in flows into Japan focused funds for the two months (April/May) after the disaster in March ended in June and the Group had little net outflows during the month.
•Insert the two months of net outflows, there was an increase in funds to funds investing in Latin America, while Eastern European focused funds continued the trend of redemption.
• For the first month of the last seven trading be focused funds had net redemption while credit strategies continued to grow at a higher rate than equity strategies.
The Angel's second consecutive month of higher than average loss, investors funding for tech sector funds continued in above average.
• Market neutral equity funds had the highest proportion of inflows strategy special in June and statistical arbitrage strategies suffered greater than average redemption.

Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was-0.18% in June and + 3.69% this year.
• Government bond strategies done best in June, + 0.41%. Mortgage strategies was the only other positive group + 0.10%. All other classifications to fixed income was down in June.
• Fixed Income Fund's assets increased 0,51% in June to an approximated 696.6 billion dollars. Investors to net 4.1 billion dollars during the month.

Equity capital (EQ) strategies
• The average return in all equity focused strategies was-1.13% in June, + 0.56% YTD.
• Short bias funds led all others in June, + 2.80%. Natural resource sector funds was at the other end of the spectrum,-3.10%.
Assets of • Equity fell an estimated-1.05% to 843.6 billion dollars in June. Investors that have been assigned a net 690 million dollars, the second lowest total in 2011.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was-2.56% in June and-2.34% YTD.
• Funds which invest in metals markets lost most in June-7.20-%. FX strategies followed their worst month since 2003 with another down month-0.66%, leaving Group-1.99% YTD.
• Agriculture sector funds led the sector commodity group, but were still down in June,-0.52%.

Summary analysis
Effects of broad market uncertainty seems to have finally materialized in the hedge fund flows in June. It is important to remember that an investor's decision to award or redeem General lag current or even a month earlier return data indicating June flows was evidence for increasing caution two or three months before. Given this scenario, probably it will be a slow start to the second half of 2011 in industry growth.

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HFN industry report: May 2011

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HFN industry overview: May 2011

On June 21, 2011 with 3,235 hedge fund products, reporting, HFN Hedge Fund aggregated Index was-1.06% in May and + 1.62% of the current year 2011 while S & P 500 Total Return Index (S & P) was-1.13% during the month and + 7.82% YTD.

Hedge fund industry highlights may:
• Total industry assets decreased approximately 0.79% to $ 2.586 trillion in May. Performance accounted for the majority of the reduction of the supply and net investors funds were positive for 11th month.
Sv?ltf?dda performance drivers in April reversed in May with losses manifest in CTA/managed futures strategies together with energy and technology focused equity funds.
• Credit strategies generally performed the rest of the industry, led again by mortgage funds, but gains were also some EM interest in markets and short European sovereign debt.
• Japan focused funds was down for the third straight month, and has lost nearly 5 percent on average since the earthquake in March.

The sharp turnaround of the US dollar and the slide in commodity prices were the most obvious indicators of a global reduction in exposure to risky assets during the month. Despite the overall capital market image were pockets of strong returns for hedge funds in the health sector and positive performance, albeit small, for small/micro cap related strategies. Mortgage funds continued to produce positive returns and, together with health funds is the only strategy/sector groups that have performed the S & P 2011.

HFN developed outliers ratio to determine which sectors producing returns outside of their normal ranges. In may, it was the tech sector, CTA/managed futures and global macro strategies produce abnormally negative total returns.

HFN regional benchmarks
Emerging market shares related returns, mainly Russia and India focused strategies, was the biggest drag over EM returns in May while all emerging market regional exposure produced negative average yield, was EM debt strategies positive for that month. Index HFN emerging markets are barely positive during the year, + 0.12%, the lowest level through the first five months of the year since 2008 and the second as the lowest since the Russian financial crisis in 1998.

Australia focused funds declined more than any other developed market in may, falling-2.28% during the month. The Group seemed to have ridden the wave of rising commodity prices by late 2010, but suffered during the sell off in may, the Group has performed ASX indexes, even in the months after the index has risen, but losses in may reflected ASX downturn.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of May 2011 was $ 2.586 trillion, a decrease of 0.79% or 20.5 billion dollars from April.
• Performance accounted for a decrease of 31.9 billion dollars and investors accounted for a net inflow of 11.4 billion dollars.
• The core (% access change due to investor funding/redemption), growth was 0.44%, a reduction from April and only slightly over the previous 12-month average.
• Overall, the notorious AUM is now 14% over the historic high in Q2 2008.

NET flow information investors continue to show interest to invest directly into hedge funds, a trend which has continued for several months. Despite decreasing core share growth showed may the 11th straight month inflows of net appropriation. Monthly total assets decline was only the fourth since April 2009, the last month of massive redemption inflows after the crisis.

Some sector specific feeds
• Investor appear to believe there is profits investing in Japanese markets. NET investment flows into Japan focused hedge funds has been above average in the industry over the past two months.
• Commodity focused funds led the inflow of investment market in may, followed by four classifications of debt. Flows into the mortgage, convertibles, sovereign and corporate bond funds gone equity fund flows.
• Funds investing primarily in European markets have experienced significant fluctuations in the investors ' interest. In April, but inflows jumped in may for more money left than was allocated, which had been the trend for several months until April.
• Money laundering continued to flow onto the technical sector funds, although the total outsized losses during the month. Health strategies also saw a blip of positive money flows.

Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 0.43% in May and + 3.63%-years.
• Mortgage funds done best in may, + 1.52% while distressed strategies posted moderate declines,-0.23%.
• Fixed Income Fund's assets increased 1.17% in may for an estimated 693.1 billion dollars. Investors to net 5.1 billion dollars during the month.

Equity capital (EQ) strategies
• The average return in all equity focused strategies was-0.84% in May and + 1.15% YTD.
• Funds investment in the health sector shares had the best results, + 1.54%, followed by those who invest in small/micro cap issues, + 0.29%. Energy sector funds had the most difficult month,-2.43%.
Assets of • Equity fell approximately 0.71% to 852.5 billion dollars in may, Investors allocated a net $ 1.9 billion, a decline from April and during the previous 12-month average.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was-3.28% in May and-0.16% YTD.
• Funds which invest in FX markets gave back most of April's profits, 2.45% and is now-1.01% for the year.
• Only agriculture funds had total profits in may, + 1.51% and funds investing in metals markets fell most,-3.53%.

Summary analysis
The influx of capital, money is flowing into hedge funds has continued in the above average pace, be a vote to the lack of confidence in direct investments in traditional markets. The vast majority of stock markets has negative territory in June, Greek debt crisis, the European credit markets are at a point in constant change and commodity prices are mixed with energy prices continue to decline. These factors point to another difficult month for total hedge fund returns, but it may be the second consecutive month when industry superior broad equity markets.

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HFN industry report: April 2011

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HFN industry overview: April 2011

May 31, 2011 with 4,117 hedge fund products, reporting, HFN Hedge Fund aggregated Index was + 1.42% in April and + 2.79% the year 2011, while the S & P 500 Total Return Index (S & P) was + 2.96% during the month and + 9.06% YTD.

Hedge fund industry highlights April:
• Total industry assets increase estimated at 2.26% to $ 2607 trillion in April. Performance accounted for the majority of the asset increases and net investors funds were positive for the 10th month.
• A falling US dollar and higher energy and precious metals resulted in strong results from foreign currency and natural resource strategies in April.
• Healthcare funds presented best equity market sector-oriented performance in April followed by the technology funds. Despite rising energy prices, energy sector fund equity returns below average.
• Japan focused funds again was negative during the month, Japan Index was 0,74% in April and 0.66% YTD.

CTA/managed futures and global macro strategies were the primary beneficiaries of the US dollar plunge into other major currencies, together with the increase of gold and almost 30% collection in silver prices. However, bond falling yield on United States's 10-year note, wounded several funds focused on Government related strategies. The Group was-0.02% in April to a few strong return from funds focused on EM sovereign credits.

HFN developed outliers ratio to determine which sectors producing high or low earnings outside of their normal ranges. Surprisingly, in April, mortgage focused funds had the lowest average ratio despite HFN Mortgage Index increases + 1.49%. Health care, the CTA, macro, technology and fusion arbitrage funds all had over average conditions in April. Convertible and credit arbitrage, along with mortgage strategies all had low numbers.

HFN regional benchmarks
Emerging market strategies again outperformed developed market focused resources in April, led by those investing in Brazil and China returned an average of + 2.34% and + 2.13%, respectively. Russia focused funds fell in the month,-1.54%, but is still the best regional classification 2011, + 4.38%.

Japan funds continued to struggle in the aftermath of the March natural disaster covered by 0,74% in April, while the Nikkei dropped + 0.97%. Japan funds lost an average of-5.30% over the last two months, driving the HFN Japan Index to negative territory for 2011. April was a rare instance of Japan funds be negative on average when the Nikkei rises. This happened only three other times in the last five years. In every previous occasion Nikkei bouncing off of a huge loss.

Monthly access Flow estimates
• Estimated Total hedge fund assets at the end of April 2011 was $ 2607 billion, an increase of 2.26%, or 57.6 billion dollars from March.
• Performance accounted for an increase of 41.2 billion dollars and investors accounted for a net inflow of 16.5 billion dollars.
• The merged core (% access change due to investor funding/redemption) growth 0,65%, an increase from March, and over the last 12 month average.
• Total the notorious AUM is now 13% over the historic high set in the second quarter of 2008.

Net flow information, investors continue to show interest to invest directly into hedge funds. April inflow showed the tenth straight month of net appropriation and the Central growth was the second largest in 2011. The average growth over the past 12 months is 0.40%

Some sector specific feeds
• Japan fund investors flow data has been mixed, but the majority of the data reported to the HFN specify more funds were net investor inflows in April than the outflows.
• Commodity, credit arbitrage and macro strategies had the highest proportion of allocations in April. Emerging markets, market neutral equity and multi-strategy Fund information net redemptions.
• Managers located in developed Europe had the highest proportion of allocations in April followed by Asia, then North America.
• Funds with Europe as an investment region had also positive investor flows in April while they focused on Latin America and emerging Europe had net outflows.
Performance Review
Fixed income (FI) strategies
• The average return of all fixed income focused strategies was + 0.93% in April and + 3.30% this year.
• Distressed credit funds performed best in April, + 1.77% and mortgage funds continued to post positive return, + 1.39%.
• Fixed Income Fund's assets increased 1.84% in April to an estimated 684.8 billion dollars. Investors to NET $ 5.7 billion during the month.

Equity capital (EQ) strategies
• The average return of all equity focused strategies was + 1.11% in April and + 2.60% YTD.
• Funds investment in the health sector shares had the best return, + 4.60%, followed by those who invest in technology stocks, + 1.61%. Financial sector medium-low, but were positive, + 0.66%
• Equity assets increased approximately 2.72% to 858.6 billion dollars in April. Investors allocated NET 8,4 billion dollars during the month. a sharp increase from March.

Commodity and foreign exchange (FX) related strategies
• Broad natural resource commodity strategies was + 3.08% in April and + 3.56% YTD.
• Funds that invest in FX markets had its best month in more than four years, + 2.67%, and is + 1.61% YTD
• Funds focusing on metals markets are carried out, + 2.82%, as well as energy commodity funds (not EQ energy sector), + 2.20%. AGRI-focused funds lagged, + 0.18%, with relatively volatile return of fund performance.

Summary analysis
Investors ' interest in April continued to be above the 2010 rates, which has been the case in each of the first four months of 2011, proof that the big investors continue to increase funding for industry despite the performance is equity markets. With can come to a close and equity markets as broadly lower, it turns out that at least one month of the year in industry will surpass. Long/short equity strategies have lagged the S & P of the monthly average of 156 points this year, an indication of general defence reaction. It is probably for the benefit of multiple strategies in may, but reverse the April the development of a declining US dollar will likely result in lost in the macro and CTA strategies.

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