eVestment|HFN Industry Estimates for February 2012

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Hedge funds were broadly positive in February, +1.94%,
and off to their best start in 12 years, since 2000. In
that year, the tech bubble burst and returns for the
industry remained positive for the year, despite the S&P
500 declining -9.10%.

• Early indications show net investor flows were positive
for the second consecutive month in February, firmly
reversing the trend of outflows seen in the second half
of 2011.

• 60% of funds reporting for February indicated positive
net investor flows during the month. 75% of large funds
(>$1 billion) have reported allocations outpaced
redemptions in February.

• Positive performance in February appeared to again be
driven by long-biased equity exposures, particularly to
emerging markets. Funds investing in Brazil and Russia
built upon their strong starts to 2012, while funds
focused on China were positive, but lagged other EM
exposures in February.
• Smaller funds appear to be outperforming their larger
peers in the current environment. Strategies with less
than $1 billion in AUM have returned greater than 100
bps more than those above to begin 2012.
• The aggregate of all equity strategies outperformed
credit and macro funds, but all classifications were
positive. Only short biased funds and FX strategies have
reported negative aggregate returns during the month.
• Mortgage strategies continued to post solid results and
are the best performing fund classification over the last
twelve months.

Complete report

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