hedge fund analysis - Ops 101

CHINA EMERGES AS ASIAN HEDGE FUND CAPITAL. HFRI Emerging Markets: Asia ex-Japan Index posts best 1Q since 2006; Thirty percent of Asian hedge funds now located in China. CHICAGO (May 11, 2012) - Hedge funds investing in Emerging Asia posted industry-leading gains to start 2012, with the HFRI EM: Asia ex-Japan Index gaining +7.4 percent in 1Q12, the best start for the index since 2006 when it gained +12.3 percent, according to data released today by HFR, the leading provider of data, indices and analysis of the global hedge fund industry. The HFR index of Emerging Asia hedge funds easily outperformed Chinese equity markets by over 450 basis points for 1Q; recent gains follow a volatile 2011 which saw the HFRI Asia Index decline by -18.08 percent. In contrast, while the HFRX Japan Index gained +5.2 percent for 1Q12, it trailed the strong quarterly gain of +19.2 percent for the Nikkei 225.

Hedge funds posted a narrow decline to begin 2Q12, with the HFRI Fund Weighted Composite Index declining by -0.36 percent in April. HFRI April decline pares YTD gains to +4.4 percent; Relative Value Arbitrage posts fifth consecutive monthly gain.

HFRX Global Hedge Fund Index gains +0.12% in April with contributions from Macro, Relative Value Arbitrage strategies. HFRX Market Directional Index posts gain of +0.32%.