M O N T H LY R E V I E W O F H E D G E F U N D S & A L T E R N A T I V E I N V E S T I N G
FEBRUARY 2013
V O L U M E 1 3 I S S U E 2
SURVEY OF ALLOCATORS’
INVESTMENT TRENDS
AIMA CANADA
TAKES TO THE SLOPES
THE STATE OF THE
INTERNATIONAL
HEDGE FUND
INDUSTRY
Hedge Fund Industry Outlook:
What Can You
Expect in 2013?
In step with
market needs
kpmg.ca
AIMA and KPMG have teamed up and conducted
quantitative and qualitative research with 150 hedge
fund managers around the world over the period
from October 2011 to February 2012. The results of
this survey indicate that the changes brought on by
the institutionalization of the alternative fund industry
have been underestimated.
KPMG is focused on providing informed perspectives
to help navigate challenge and take advantage
of opportunity – from value creation to realization –
keeping in step with market needs.
PETER HAYES
Partner,
National Director,
Alternative Investments
T:
416-777-3939
E:
JAMES LOEWEN
Partner,
National Asset
Management Leader
T:
416-777-8427
E:
Agree that the demands of regulatory
compliance have increased since 2008.
80%
Have had to increase staff headcount
in order to increase transparency.
32%
Say investors have become more demanding
in terms of due diligence since 2008.
Hedge fund allocations may triple in 2013
New allocations to hedge funds may more than triple this year, pushing the global industry’s assets to a new high,
according to an annual survey by Deutsche Bank AG. (DBK) Hedge fund assets worldwide may increase 11 percent
to $2.5 trillion by year-end, according to the survey by the Germany’s largest bank. Investors indicated they will
add $123 billion of capital to the industry, in addition to investment returns that are expected to boost assets by
$169 billion, the Frankfurt- based bank said.
Hedge funds are forecast to draw more net deposits as investors, especially institutions, pursue more stable
returns with low correlation with other assets such as stocks and bonds, the report showed. The $2.3 trillion global
industry gained an average 6 percent last year, taking in $34.4 billion of net inflows, according to Chicago-based
data provider Hedge Fund Research Inc.
“Overall, 2013 looks to be promising for the industry,” authors led by Marlin Naidoo, who heads the bank’s hedge
fund capital group for Americas, wrote in the report. “Those hedge funds that are able to post consistent returns
year after year are emerging as an attractive option for investors looking for both better risk-adjusted returns and
capital preservation.” About 62 percent of the investors said they expect their hedge fund holdings to increase
this year, compared with 42 percent whose allocations increased in 2012, the survey showed.
Carl Berg, managing partner of Catalyst Financial Partners, in collaboration with Susan Weerts, contributor at
Seekingalpha, published The Survey of Allocators’ Investment Trends. The report explores the trends within the
hedge fund industry and assesses how compelling hedge funds are across different financial products.
Based on feedback from over 50 allocators, the report shows that in 2013, an allocator is ready and willing to
invest with an institutional quality hedge fund if it is providing portfolio benefits, decent – but not necessarily top
- performance, at attractive fee levels and terms. If those criteria are not fulfilled, allocators may look at substitutes,
notably Private Equity, ETFs and mutual funds, or Direct investments. Conversely, allocators are thus less and
less likely to invest into funds that have unconvincing performance or style drift, small hedge funds lacking an
institutional framework, or funds (of any size) that refuse to review fees.
Going into 2013, L/S Equity looks like the preferred allocation destination within the hedge fund space, followed
by Emerging Markets and Credit & Fixed Income. Carl Berg and Susan Weerts argue that this signals a return to
more risky assets, as Emerging Markets have particularly been out of favor the last 12-15 months.
As confidence continues to rebound in hedge fund investments, it will be interesting to see whether investments
with emerging managers will yield the abnormal returns anticipated by wealth managers considering them as part
of their portfolio, or whether their more experienced or established counterparts will continue to take the lead.
I want to take this opportunity to thank James Burron, AIMA Canada and Barry Francis, Francis Communications
for allowing me the opportunity to meet
Andrew Baker
, Chief Executive Officer of AIMA during his recent brief visit
to Canada. The interview begins on page 10 of this issue.
Terry Krowtowski
Andrew Thornhill
Managing Director
416.842.6440
PRIME BROKERAGE EXPERTISE.
rbccm.com
The RBC Capital Markets Prime Brokerage platform represents a team of industry experts who offer alternative
investment managers the infrastructure, resources and operational expertise to support all of their business initiatives.
Our comprehensive Canadian platform is positioned to capture opportunities at all stages of the alternative investment
life cycle.
Client Service | Securities Lending | Custody | Clearing | Capital Introduction | Technology | Financing
Performance Summary
January
2013
YTD
CHW HEDGE FUND INDICES (CHW-HF)
%
%
CHW-HF Composite Index
0.60
0.60
CHW-HF Equity Hedged Index
0.64
0.64
CHW-HF Notes Index
0.19
0.19
CHW-FOHF Index
0.08
0.08
Scotia Capital Canadian Hedge Fund Performance Index
SC CDN HF Index Asset Weighted
1.47
1.47
SC CDN HF Index Equal Weighted
1.25
1.25
Dow Jones Credit Suisse Hedge Fund Indices
Dow Jones Credit Suisse Core Hedge Fund Index
0.99
0.99
Convertible Arbitrage
0.49
0.49
Emerging Markets
1.34
1.34
Event Driven
2.14
2.14
Fixed Income Arbitrage
0.28
0.28
Global Macro
0.89
0.89
Long/Short Equity
0.54
0.54
Managed Futures
0.15
0.15
HEDGE FUND INDICES
Hennessee Hedge Fund Index
2.69
2.69
HFRI Fund Weighted Composite Index
2.58
2.58
HFRI Equity Market Neutral Index
1.28
1.28
HFRI Fund of Funds Composite Index
2.32
2.32
MARKET INDICES
Dow Jones Global Index (C$)
5.17
5.17
Dow Jones Global Index (U$)
4.62
4.62
Dow Jones 30 Industrial Average (US$)
5.77
5.77
NASDAQ Composite Index (C$)
4.61
4.61
NASDAQ Composite Index (US$)
4.06
4.06
S&P 500 Total Return Index (C$)
5.73
5.73
S&P 500 Total Return Index (US$)
5.18
5.18
S&P/TSX Composite Index Total Return
2.02
2.02
Contact Information
Canadian Hedge Watch Inc.
20 Toronto St., Suite 820, Toronto, Ontario M5C 2B8
tel: 416.848.0277 toll free: 1.877.249.9249 fax: 416.848.0278
Media, Advertising & Editorial:
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is published 11 times per year by
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We welcome articles, suggestions
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to exercise editorial control in accordance with its policies
and educational goals.
Disclaimer
Canadian Hedge Watch (CHW) presents news, information and data on both Canadian and Global alternative investment activity. The information presented is not to be taken as an endorsement, investment advice or a promotion for the organizations and individuals whose material and information appears in this CHW publication or on the Canadian Hedge Watch website.
The material presented, separate from paid advertisements, is for the sole purpose of providing industry-specific information. As with all areas of financial investing, CHW recommends strongly that readers should exercise due diligence by consulting with their investment advisor or other trusted financial professional before taking any action based upon the information presented within these pages.
Editorial and Sales
Editor
Terry Krowtowski
Sales Director
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Online Developer
Ferenc Schneman
MONTHLY REVIEW OF HEDGE FUNDS & ALTERNATIVE INVESTING FEBRUARY 2013 V O L U M E 1 3 I S S U E 2
Retirement Coaching Conference
Wednesday, April 3, 2013
Hyatt Regency, Toronto
To register, please contact:
Judy Street T 416.306.0151 x 2241
or visit:
www.
retirementcoachingconference
.com
The next five years could be the best five years of your
practice IF you recognize and take advantage of the
unprecedented opportunity! The first Baby Boomers
have turned 65 and, for the next five years, 10,000 more
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The
“Retirement Coaching Conference for Financial
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F O R F I N A N C I A L A D V I S O R S
C O N T E N T S
F E B R U A R Y
Hedge Fund Industry Outlook:
4
What can you Expect in 2013?
Deborah Prutzman,
Regulatory Fundamentals Group
Mary Beth Hamilton,
Eze Castle Integration
AIMA Canada Takes to the Slopes
6
Survey of Allocators’ Investment Trends
8
Carl Berg,
Catalyst Financial Partners
Susan Weerts
The State of the International
10
Hedge Fund Industry
CHW Interviews
Andrew Baker,
CEO of AIMA
Business Insider -
13
Money Game – Chart of the Day
Hedge Fund Performance Tables
14
20 13 Calendar of Events
22
Speakers, Deborah Prutzman, CEO of the Regulatory Fundamentals Group, and Mary Beth Hamilton,
Vice President of Marketing for Eze Castle Integration, recently hosted a webinar on the Hedge
Fund Industry Outlook for 2013. Following is a recap of the key topics discussed around operational
due diligence, regulations and technology trends.
Insights from Deborah Prutzman, Regulatory Fundamentals Group
2012 was a year marked with significant regulatory changes in the world of investment
management. So far, we’re expecting to see more of the same in 2013. This time, the direction and
manner of change will likely be more predictable. Some important themes we expect will permeate
throughout the year include:
• A need for trust
• A focus on governance
• Pensions searching for yield
• Central counterparty risks
• An arms race between regulators
• A need to focus on supervisory processes around marketing
External Factors Driving Change in 2013
As always, investors are hungry for yield, but they are smarter now thanks to lessons learned in the
post-Madoff era. This year, the “typical” investor that invests in alternatives is changing. We expect
the importance of institutional investors to increase, while pension funds and endowments start to
seek greater allocations.
So, what does this mean? First and foremost, we’ll see an increased focus on operational due
diligence amongst hedge funds. Additionally, this will raise the stakes for asset managers. If word
gets out to the media that a high net worth individual lost money in a questionable investment
scenario, the media and the public will not see this favorably. But, if a teachers union or group of
nurses loses pension funds, there will likely be far greater backlash.
Major Changes to Look For
2013 is likely going to be the year of regulatory enforcement in the alternatives industry. We’re
seeing that the regulatory bodies that govern this space are especially invigorated right now. The
SEC has a new Asset Management Unit in place, and is changing its approach to focus more on
conflicts, human motivation and deep knowledge of the industry. We expect much of the same at
the CFTC as well. Other US regulators, such as the FERC (Federal Energy Regulatory Committee)
and state governance groups will start to play a more influential role this year as well.
Insights from a
recently hosted
webinar on the
Hedge Fund Industry
Outlook for 2013.
Deborah Prutzman
CEO
Regulatory Fundamentals Group
Mary Beth Hamilton
Vice President of Marketing
Eze Castle Integration
Hedge Fund Industry
Outlook: What can
Another change to look for is the tendency for regulators to focus on the
personal liability of firms’ senior management. The media is applying
pressure to the industry to hold these executives accountable for the inner
workings of their funds, and popular belief is they should be taking a more
supervisory role going forward.
In 2012, we began to see increased litigation coming from the investor
base and we believe this will continue to grow, especially as the
“whistleblower” phenomenon gains momentum. Last year, the SEC
received 3,000 tips from whistleblowers (about 8 per day) – a number that
is expected to increase in 2013.
What Adjustments Should You Make?
Develop an enterprise-wide understanding of needs as they pertain to
the firm’s strategy, governance, operations and technology. Requirements
should be innately built into the firm, using clear governance and strong
policies. As a best practice, we recommend the following framework for
governance:
1. Perform a comprehensive risk assessment.
2. Implement a process for initiating business changes and new activities.
3. Implement a process for monitoring for external environmental changes
(such as taxes, laws, best practices, etc.)
4. Ensure your staff has a clear understanding of expectations.
This will result in a more mature, agile fund that is in a better position to
navigate the tough competitive environment and upcoming regulatory
changes.
Insights from Mary Beth Hamilton, Eze Castle Integration
DR & BCP In the Spotlight
Recent events have tested the preparedness of firms across the United
States and internationally. From the London Olympics and summer power
failures to Hurricane Sandy and the recent flu season concerns, the need
for well thought out DR and BCP is pretty clear.
It is important to note that each of the scenarios above impact a business
in different ways and, highlight the importance of conducting thorough
risk analysis and scenario planning when developing a disaster recovery
and business continuity plan. It is important to think through the different
types of scenarios that can impact your firm.
Movement to the Cloud
Adoption of cloud services by hedge funds and alternative investment
firms continues to increase at a rapid rate. Eze Castle estimates that 40%
of our clients are using some sort of cloud service. A 2012 independent
cloud market survey found that nearly 8 in 10 hedge funds & investment
management firms are using the cloud for at least some of their IT
infrastructure or application needs.
The key reasons firms are moving to the cloud are:
• To reduce IT infrastructure investment/costs
(transfer from CapEx to OpEx)
• To increase the speed of technology deployment
• To simplify IT management and support
• To improve IT flexibility and scalability of on-demand resources
• To take advantage of built-in disaster recovery and business continuity
features and functionality
Navigating the BYOD Trend
Today, the acronym BYOD is becoming common place amongst
professionals responsible for overseeing a firm’s IT functions. After resisting
it for years, firms are starting to recognize that by allowing employees to
bring their own devices they can experience potential cost savings,
productivity increases and make some employees a little bit happier.
A survey by Good Technology found that 90% of financial organizations
support the use of personal mobile devices at work. It also found that the
most popular model for BYOD at financial institutions is for employees to
purchase and pay for their own device with the company offering support
in the form of access to corporate systems. The next-most popular is a
model where the enterprise reimburses users for "eligible expenses" up
to a point
The prevalence of employees bringing their own devices also has
implications on corporate security and policies. Hedge funds need to be
thoughtful about their policies and ensure employees are knowledgeable
about responsible practices.
More Resources
Here are some additional sources of (free!) information to help you stay
up-to-date on the latest in hedge fund regulations:
• Eze Castle’s Hedge Fund Regulations Knowledge Center
www.eci.com/knowledge-center/hedgefundregulation.html
• Regulatory Fundamentals Group’s “Regulations Simplified” Blog
regfg.com/blog/governance/rfg-white-paper-the-unasked-question-fund-directors-worth-it-or-not/
To hear the complete presentation, be sure to view the webinar,
Hedge Fund Industry Outlook: Trending Topics for 2013.
www.eci.com/knowledge-center/webinars/hedge-fund-outlook-2013.html
Deborah Prutzman
is the founder and CEO of Regulatory Fundamentals
Group, which delivers an intuitive web-based platform to keep investment
firms up-to-date on regulatory changes and other issues that must be
addressed head-on, while building an enterprise risk management structure
that meets the expectations of investors, regulators and senior management.
Deborah has a deep background in the domestic and international financial
services industry and is experienced in regulatory risk management and
corporate governance. For more information, visit
www.regfg.com.
Mary Beth Hamilton
is vice president of marketing for Eze Castle Integration,
a leading provider of IT and cloud computing services, technology and
consulting to hedge funds and alternative investment firms. Mary Beth has
over a decade of technology and marketing experience and holds an MBA
from Boston College. For more information on Eze Castle Integration, visit
More than 60 AIMA
Canada members and
guests took to the
slopes January 31
st
at
Osler Bluff Ski Club
in Collingwood for
AIMA’s 4
th
annual
Ontario Ski Day.
The full-day event was organized by
AIMA Canada
’s Events Committee as a fun day and member
networking opportunity. Co-sponsored by CIBC, CIBC Mellon and KPMG, It featured everything
from lessons for beginners to a Giant Slalom competition for more advanced skiers and the usual
après ski festivities which featured prize presentations to just about everyone.
The day featured some interesting sights on the various ski runs, including a group of mystery skiers
in fat suits (who may or may not have been AIMA members in disguise).
The event was arranged by Osler member and AIMA Canada Deputy Chair
Andrew Doman
, ably
supported by organizers
Claire Van Wyk, Laura Szekely, Mykal Johncox
and COO
James Burron
and AIMA’s current co-op student
Lisa Miranda
. Also supporting the arrangements were AIMA
Canada Chair
Gary Ostoich
and Executive Committee members
Paul Patterson
and
Chris Pitts
.
All in all, it was a great day for the organization which will be celebrating the tenth anniversary of its
founding with a gala event this April.
AIMA Canada
Takes to the Slopes
Gary Ostoich (left) with Chris Pitts and Donna Beasant
Skiers arrive at Osler.
It takes all kinds!
Tackling the slalom course.
Guess who?
Skiers relax between runs.
Andrew Doman congratulates John Middleton
on his outstanding slalom form.
Jody Brison and Wendy Chen
Scope of Survey
In the last couple of years broadsides have been fired at the hedge fund industry in the form of
industry criticism, competitive external and internal pressures, meager returns, and difficult markets.
We now wanted to take the pulse of what allocators currently think of the industry.
We think this survey is especially interesting, since it not only explores trends within the hedge fund
industry, but also investigates how compelling hedge funds are across different financial products.
We made a similar survey in May 2010 (“A View from Both Sides: the Latest Trends in Capital
Raising”), and we compare some of those answers with this survey to see changes through time.
Executive Summary
In summary, in 2013 an allocator is ready and willing to invest with an institutional quality hedge fund
if it is providing portfolio benefits, decent - but not necessarily top - performance, at attractive fee
levels and terms.
If these criteria are not fulfilled allocators may look at substitutes, notably Private Equity, ETFs and
mutual funds, or Direct investments.
Going into 2013, within the hedge fund space, L/S Equity looks like the preferred allocation
destination, followed by Emerging Markets and Credit & Fixed Income. This signals a return to more
risky assets as Emerging Markets have particularly been out of favor the last 12-15 months.
• Allocation appetite appears strong. Most of the allocators indicate that they are looking to make
investments to hedge funds. Only a small portion of the investors takes a wait and see approach.
However, no investors (of the group surveyed) dismiss hedge funds outright.
In the last couple of
years broadsides
have been fired at the
hedge fund industry
in the form of
industry criticism.
Carl Berg
Catalyst Financial Partners
Susan Weerts
Contributor
Seekingalpha
Survey of Allocators’
Investment Trends
Survey Results
1. In 2013, would you consider allocating to hedge funds?
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
YES, now should be a good time
YES, but only if we find the appropriate manager
PERHAPS, but we'll wait and see how the year
develops
NO, too much admin, high fees and risks
involved
NO, we have been disappointed by the
• Currently allocators’ top preference is L/S Equity strategies. This
sentiment follows the current opinion that the equity markets look
favorable in 2013, on the back of less systemic risks worldwide,
rebounding real estate in the US, and a stronger China.
• More surprisingly, Emerging Markets come in second place. This signals
a return to more risky assets as Emerging Markets have been out of favor
the last 12-15 months.
• In our 2010 survey, Event Driven strategies were allocators’ top choice.
Investors rotate their exposures to the flavor of the year.
• Private Equity is the most attractive investment substitute to hedge funds.
• ETFs and mutual funds are also an attractive substitute to hedge funds.
These products bring passive beta exposure, with lower fees and less
stringent investor terms than hedge funds.
• Direct Investments are becoming a common substitute. The fact that
allocators are becoming big investors of Directs will have implications for
hedge funds, since it might circumvent their intermediary function.
• Portfolio Characteristics (non-correlation, diversification, etc) is the top
reason to allocate to hedge funds. Investors seem more interested in how
a product fits in their portfolio and core investment objective than the
strategy itself.
• The performance of hedge funds is the second top reason.
• In 2010, high absolute fund performance was the top reason for
investors to allocate to hedge funds.
• High fees and unfriendly investor terms keep allocators at bay. After
some years of a lot of scrutiny and media publicity, high fees are the top
reason for allocators to back away from allocating to hedge funds.
• About 15% of respondents thought there are other, more appealing,
investment opportunities than hedge funds.
• In our 2010 survey, identifying the ‘Right’ manager was allocators’ top
discouraging factor. ‘Too high fees’ trailed far down the list of concerns
in 2010.
• Over 1,000 allocators were sent
the survey, of which 52 answered it
between January 10-16th, 2013. The
largest groups of responders were
fund-offunds and family offices.
• Eight types of allocators responded.
There were no analysis made on the
basis of allocator type; the survey
responders were anonymous and the
answers aggregated.
Conclusion
The laundry list for a hedge fund to be successful is not actually that long:
run a quality institutional investment firm, make sure it provides benefits
in allocators’ portfolio analysis, limit draw downs while producing decent
performance, and all this at favorable terms and fees.
At different stages of a fund’s growth, however, at least one of these
parameters tend to fall short. Smaller funds often struggle in providing
the necessary institutional frame work, while larger funds refuse to
negotiate fees, and most funds are susceptible to unconvincing
performance or style drift.
In the past year, we think, the development has been in the direction for
investors and managers to understand what works for each party, which
bodes for better prospects for industry participants alike.
Carl Berg
runs Catalyst Financial Partners, a specialist investor events firm
for the alternative investing industry. The firm links alternative investment
managers and investors together through investor events. He also works with
selected alternative investment firms in a capital raising capacity.
www.catalystforum.com
Susan Weerts
is a contributing writer to Seekingalpha.com since 2009. Current
research areas are strategic trading games on ETF and its underlying index,
market-neutral L/S strategy. She is also a consultant on China-related business.
This survey is copyright Catalyst Financial Partners but we accept that the survey is being linked to or quoted as long as you refer to the source. For any comments or questions contact:
Catalyst Financial Partners LLC
118 E 28th Street, Suite 314 New York, NY 10016 T:+1 212 966 2993 E: [email protected]
2. Within the hedge fund space, what sectors do you think would be especially interesting in 2013? 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% L/S Equity Emerging Markets
Credit & Fixed Income
Event Driven Mortgage Macro Commodities, Energy
Quant & CTAs Trade Finance
3. What other investment opportunities would you consider, if unwilling or unable to consider hedge funds?
0% 5% 10% 15% 20% 25% 30%
Private Equity Funds ETFs and Mutual Funds
Direct Investments in Equity / Debt
Real Estate Funds 'Public' Hedge Funds Cash
4. What is the most important criterion for a hedge fund that you would consider investing in?
0% 10% 20% 30% 40% 50% 60% Portfolio Characteristics Meaningful Performance Appropriate AUM Size Star Management Team
Long Track-record Low Fees and Attractive Terms
5. What is the consideration that discourages you most in investing in hedge funds? 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Too High fees, Unfriendly Investor Terms
Lackluster Performance Difficulty in Selecting the 'Right' Manager
There Are Other, More Appealing Investment Opportunities Fund-of-funds 27% Single/ multi-family office 27% Investor Consultant 10% Wealth Manager 10% Other Inst. Investor 10% HNW Individual 6% Endowment 7% Pension Fund 3% What type of allocators participated in the survey?
CHW
Can you discuss the size, objectives and international scope of the international AIMA
organization?
Andrew Baker
Founded in 1990, the Alternative Investment Management Association (AIMA) is the
global representative of the hedge fund industry. We represent all practitioners in the alternative
investment management industry – including hedge fund managers, fund of hedge funds managers,
prime brokers, legal and accounting firms, investors, fund administrators and independent fund
directors. Our membership is corporate and comprises over 1,300 firms (with over 6,000 individual
contacts) in more than 50 countries who all benefit from our active influence in policy development,
our leadership in industry initiatives and our outstanding reputation with regulators. We represent
the global hedge fund industry at national and international levels in ongoing discussions about the
future regulatory framework for the industry. Our focus on education, regulation, policy development
and sound practices has resulted in a substantial body of work used around the world by members,
institutional investors, policymakers and supervisors. We are committed to developing industry
skills and education standards, and we are a co-founder of the Chartered Alternative Investment
Analyst designation (CAIA) – the industry’s first and only specialised educational standard for
alternative investment specialists.
CHW
Having served in the CEO role for four years now, can you outline your original goals for
the organization and give us your thoughts on the progress made to date against those goals?
AB
The global financial crisis convinced me that AIMA needed to transform the work it does on
behalf of the industry around the world. It was clear that there would be a wave of new laws and
regulations introduced internationally, some designed to regulate hedge fund managers, others to
regulate the markets our manager members operate in, others the taxes that are applied to them.
The world has changed, and so has AIMA. We have built new structures and brought in new people
to address these challenges. We are very much more active now than ever before in advocacy on
behalf of the industry, whether with the policymakers or regulators or other important audiences like
the press or investors. We have also used the expertise of our members in unprecedented numbers
through their contributions to our many working groups, for which we are enormously grateful. All
this work has delivered significant real results for the industry. Our diligent, patient and sustained
engagement on the major pieces of regulation internationally and our willingness to engage
constructively with the authorities in order to explain the industry’s concerns, has helped to influence
key outcomes within the whole process. Much of the regulation impacting the industry globally is
no longer as damaging as it was when first proposed. Outcomes such as these are a testimony to
the work of our staff, members and volunteers and the relationships they have built up.
Canadian HedgeWatch
took the opportunity to
discuss the state of the
international hedge fund
industry with Andrew
Baker, Chief Executive
Officer of the Alternative
Investment Management
Association (AIMA), during
his recent visit to Canada.
Mr. Baker was appointed
AIMA CEO in 2009. Based
in the organization’s
London headquarters,
Mr. Baker brings to his
position an extensive
background of experience
in international finance
and investments.
The State of
the International
CHW
AIMA Canada, the Canada national group of the international
AIMA organization, will celebrate the tenth anniversary of its founding
this spring. How would you assess the development of AIMA Canada
to date?
AB
AIMA Canada’s development has been very impressive. It has grown
rapidly since its founding in 2003 and currently has approximately 100
corporate members across the country. AIMA Canada has been very
active on many fronts, including developing and promoting sound
practices, enhancing industry transparency and education, and liaising
with the wider financial community, institutional investors, the media,
regulators, governments and other policymakers.
CHW
Can you comment on the nature and relative growth of the
hedge fund industry in Canada?
AB
We have seen significant growth in both the number of funds and
variety of strategies being traded within Canada over the past few years.
There has also been a good deal of growth in AUM during this period.
Canadian fund managers currently manage over $30 billion, up from
about $12 billion just five years ago.
CHW
Over the past two years, AIMA Canada has established
regional committees in Quebec, Alberta and B.C. Is this regional
approach a common practice with other AIMA national groups?
AB
Given Canada’s geography, its distinct regional markets and its
provincial regulation, it made sense to take this regional approach. This
set up is unique in the international AIMA organization.
CHW
Can you tell us how AIMA has worked with regulators in the
EU to provide input and represent member views on the development
of the Alternative Investment Fund Managers Directive (AIFMD) which
governs access to EU investors by non-EU fund managers?
AB
AIMA, as the global hedge fund association, has engaged intensively
and constructively with European and international policymakers on the
Directive since the original draft was published by the European
Commission in 2009. At the time of the publication of that original draft,
we stressed that we supported much of the Directive, particularly those
provisions relating to transparency and involving the registration of
managers and their reporting of systemic data to supervisors in the
interests of financial stability assessment in line with the G20 consensus.
However we also expressed grave reservations about some of its content.
There were many provisions that would have negatively impacted both
the alternative asset management industry globally and also European
investors. Since then there has been considerable progress and a
significant amount of ground has been covered. The final text of the
Directive that has now been agreed by the European Commission is a
considerable improvement not only for our members globally but in terms
of its impact on investors. Our focus has now shifted to the
implementation of the Directive. As you know, the AIFMD is a complicated
piece of legislation. It is being implemented in EU Member States in a
variety of different ways, while non-EU or ‘third country’ jurisdictions are
also taking differing approaches to it. This leaves hedge fund firms across
the world facing a lot of complex choices. Even now, the full legal and
regulatory framework for the AIFMD has not been fully finalized. But the
industry needs to start its implementation efforts now - since the sooner
one starts, the less costly it will be in the end.
CHW
AIMA recently launched an on-line self-diagnostic tool and
detailed guide to implementation for firms needing to comply with the
EU Directive (AIFMD). Can you comment on the importance of this tool
to international managers and how it works?
AB
We think it will be a very important tool for international managers as
they begin or continue to market their funds to investors in EU countries.
The diagnostic tool and implementation guide, which was jointly
produced by AIMA and the professional services firm PwC, will assist
AIMA member firms in preparing for, and tracking, their compliance
readiness. The guide outlines the various strategic and business options
both EU and non-EU managers should consider when planning for
compliance with the directive. It is supplemented by an online
self-diagnostic tool that will assist managers as they approach the July 2013
implementation deadline. We hope that these tools will enable hedge fund
firms to get a better sense of the steps that they will need to take in order
to respond to and comply with the provisions of the AIFMD.
CHW
Looking ahead, what do you see as the biggest issue facing
the international hedge fund industry?
AB
The years ahead will present another set of challenges for the
industry. Clearly, performance has always been, and will continue to be,
key. The industry will continue to evolve, mature and become more
institutionalised. There will always be a tremendous need for the kind of
sound-practice guides and due diligence questionnaires for which AIMA
is rightly lauded. But for AIMA, advocacy continues to be our priority.
2013 is likely to be even busier than 2012 in terms of workload. We are at
the end of the beginning, not the beginning of the end, of the regulatory
changes that will impact the industry. AIFMD, FATCA, shadow banking
and many other reforms will require extensive engagement with
policymakers and supervisors. AIMA will also be moving increasingly from
seeking to achieve better outcomes for the industry during the drafting
stage of regulation to helping our members with the necessary
implementation to comply with the final text of that regulation. Because
we have been working on these proposals since they were first put
forward, we understand the intent and detail of these new regulations,
and we will be producing new tools and services to help our members
comply with and interpret them.
Andrew Baker
is the Chief Executive Officer of AIMA. Prior to joining AIMA
he spent six years at Schroders in London where he was COO - Alternative
Investments.
Previously, Andrew held senior business management positions at Gartmore
and UBS Asset Management after a fifteen year spell of managing institutional
assets at HD International and N. M. Rothschild. In the early 1980s he spent
two years on secondment at the Bank Of Papua New Guinea in Port Moresby.
Andrew has a degree in Mathematics from Imperial College, London and is
married with three children.
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USINESS
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Money Game – Chart of the Day
Hedge Funds Have Lost Their Love For Gold
After taking a cursory look at the recent 13-Fs filed by hedge funds, it became apparent that hedge funds were scaling
back their exposures to gold. George Soros was among the big names that unloaded his position.
According to
Goldman Sachs’
new
Hedge Fund Trend Monitor
report, hedge funds in aggregate scaled back big time.
Despite low turnover, hedge funds notably reduced holdings of underperforming long-time favorites Apple and gold while
raising allocations to rallying Financials. For the first time in three years AAPL was not the top stock in our VIP list, instead
ranking as the third most frequent top-10 holding. The stock fell 20% in 4Q and funds reduced positions by over 30%.
Holdings in GLD were also lower than they have been in at least four years, equaling just 0.6% of long positions as
the ETF fell 6% in price.
H E D G E F U N D P E R F O R M A N C E (as of January 31, 2013)
Fund Name Asset Size ($MM) 1 Month 3 Month 6 Month YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. (3 Year) Worst 6 Mo. (3 Year) Max. Draw Down Std. Dev. (1 Year) Std. Dev. (3 Year) Beta (1 Year, TSX) Alpha (%) (1 Year, TSX) Correl. (1 Year, TSX) Correl. (1 Year, S&P500) % High Water- mark % Pos. Month Since Inc.
Acorn Diversified Program 43.000 7.59 5.26 9.19 7.59 11.51 7.04 2.97 15.81 -13.20 -17.77 18.06 14.52 -0.48 12.41 -0.26 -0.19 97.88 46.51 Act II New Media Fund A 9.470 1.10 -2.10 -0.18 1.10 8.86 4.55 4.58 18.32 -16.38 -16.38 6.99 10.45 -0.04 8.94 -0.06 0.23 91.02 53.33 Act II New Media Fund Class U - 1.06 -2.16 -0.43 1.06 4.58 - -7.36 5.03 -16.31 -16.31 6.43 - -0.06 4.69 -0.09 0.25 87.52 42.11 Act II New Media Fund F - 1.20 -0.65 1.58 1.20 9.82 6.91 5.89 18.99 -15.87 -15.87 6.72 10.39 0.34 9.18 0.49 0.54 93.59 57.38 Agilith North American Diversified Fund - 5.79 21.48 26.57 5.79 40.04 17.46 15.79 28.09 -19.60 -46.04 13.71 15.03 0.56 38.99 0.40 0.66 100.00 59.38 AlphaNorth Growth Fund Series A 15.400 0.40 -4.64 -2.46 0.40 -29.11 - -23.41 27.79 -31.98 -35.85 21.20 - 1.94 -32.75 0.89 0.67 65.56 31.58 AlphaNorth Partners Fund Class A 80.000 1.30 4.21 12.76 1.30 -10.57 31.25 21.22 151.77 -25.16 -63.33 15.66 31.82 1.26 -12.93 0.78 0.42 66.02 61.29 Amethyst Arbitrage Fund 110.000 -0.09 3.14 -1.55 -0.09 -2.16 6.12 7.81 11.44 -6.18 -34.47 5.04 4.34 0.15 -2.44 0.28 0.57 96.61 77.78 Arrow Diversified Fund Class A 31.020 0.60 0.40 0.97 0.60 -4.03 -3.12 1.51 8.46 -8.84 -18.13 3.14 4.29 0.30 -4.59 0.94 0.71 82.68 59.23 Arrow Diversified Fund Class A U$ 93.620 0.58 0.24 0.67 0.58 -5.22 -3.93 2.72 7.95 -9.72 -20.85 3.28 4.44 0.32 -5.82 0.95 0.67 79.74 57.81 Arrow Diversified Fund Class F C$ 75.750 0.73 0.78 1.71 0.73 -2.65 -2.06 2.82 8.96 -8.54 -17.21 3.14 4.32 0.31 -3.23 0.94 0.70 86.28 60.50 Arrow Diversified Fund Class F U$ 75.750 0.66 0.55 1.29 0.66 -3.61 -2.94 1.58 8.49 -9.11 -17.48 3.20 4.37 0.31 -4.19 0.94 0.71 84.29 57.14 Aurion II Equity Fund 39.470 0.66 0.66 8.16 0.66 -6.03 1.46 6.40 26.99 -27.12 -41.81 9.68 15.37 0.89 -7.70 0.90 0.51 77.40 61.90 Aurion II Equity Fund Series D 10.460 0.57 0.41 7.62 0.57 -6.96 0.49 2.75 26.92 -27.54 -42.05 9.69 15.40 0.89 -8.63 0.89 0.53 75.83 59.15 Aurion Income Opportunities Fund 31.240 -0.59 -0.22 0.46 -0.59 3.25 6.37 4.09 6.18 -0.19 -13.79 2.13 3.04 0.01 3.23 0.06 0.26 99.30 71.43 Aurion Income Opportunities Fund Class D 8.060 -0.63 -0.35 0.24 -0.63 2.79 5.85 1.78 5.94 -0.45 -13.74 2.13 3.06 0.01 2.77 0.06 0.26 99.22 65.00 Auspice Diversified Trust Class A - 0.37 -1.32 -7.38 0.37 -12.43 -0.66 -2.16 16.01 -13.21 -20.73 7.88 8.76 -0.26 -11.94 -0.33 -0.42 80.15 52.50 Auspice Diversified Trust Class S - 0.36 -1.33 -7.39 0.36 -12.44 - -7.11 4.66 -13.21 -20.76 7.88 - -0.26 -11.95 -0.33 -0.42 80.11 44.00 Auspice Managed Futures LP. - 0.40 -1.65 -7.59 0.40 -12.40 0.19 2.19 18.27 -13.44 -20.50 8.01 9.42 -0.26 -11.91 -0.31 -0.41 80.47 50.00 Barometer Long Short Equity Pool Class A 6.660 7.15 3.58 2.45 7.15 -2.41 -1.15 3.21 38.18 -19.19 -32.59 15.59 19.58 -0.24 -1.96 -0.15 -0.24 76.28 55.56 Barometer Tactical Exchange Traded Fund Pool - 3.88 -1.82 -4.55 3.88 -4.75 - 1.01 17.32 -12.79 -18.59 9.27 - -0.32 -4.15 -0.33 -0.23 84.57 51.72 Blackheath Futures Fund Class A 5.000 -8.18 -8.24 0.58 -8.18 -14.76 0.90 1.83 21.38 -15.25 -16.99 18.73 17.74 0.02 -14.80 0.01 -0.60 83.49 65.00 Blackheath Volatility Arbitrage Fund Class A 3.100 -0.94 2.05 11.36 -0.94 21.03 - 11.54 20.08 -9.46 -11.69 11.55 - 0.25 20.56 0.21 0.01 99.06 60.00 BluMont Hirsch Performance Fund 32.010 3.98 3.33 8.80 3.98 -8.71 8.33 9.42 22.15 -16.09 -41.19 11.14 11.14 0.79 -10.19 0.69 0.62 83.19 61.36 Broadview Dark Horse LP - 3.18 5.32 7.74 3.18 14.15 11.95 17.21 14.84 -5.14 -7.41 5.66 8.08 0.33 13.53 0.57 0.85 100.00 80.43 Brompton Energy Opportunities Fund Series 2009 8.680 -3.25 -6.98 1.92 -3.25 -13.84 11.58 24.67 54.25 -22.80 -33.30 25.59 24.02 1.38 -16.43 0.53 0.09 74.64 61.36 Brompton Energy Opportunities Fund Series 2010 2.730 -3.25 -6.98 1.92 -3.25 -13.84 - -0.61 54.24 -22.80 -44.11 25.58 - 1.38 -16.43 0.53 0.09 62.54 53.13 Brompton Energy Opportunities Fund Series A 3.720 -3.25 -6.98 1.89 -3.25 -13.89 9.23 3.56 47.24 -22.83 -52.21 25.60 23.47 1.39 -16.50 0.53 0.09 74.54 59.62 BSP Absolute Return Fund L/S Eq. US$ - 1.79 3.04 4.66 1.79 6.56 - 3.01 4.66 -5.35 -5.35 3.14 - 0.21 6.17 0.64 0.75 100.00 69.57 BSP Absolute Return Fund Multi Strat.US$ - 1.71 3.08 4.91 1.71 7.19 4.15 5.75 8.37 -4.61 -15.21 1.84 3.84 0.12 6.96 0.63 0.69 100.00 74.16 BT Global Growth Fund L.P. - 1.29 1.95 9.06 1.29 -6.32 0.93 9.67 30.25 -17.23 -40.84 12.12 15.69 0.93 -8.06 0.74 0.47 79.57 60.53 Burlington Partners Plus LP - 1.91 1.92 8.60 1.91 20.42 - 10.25 21.51 -13.48 -14.40 6.38 - 0.33 19.80 0.50 0.53 100.00 59.38 Burlington Partners1 LP - 1.73 1.72 5.67 1.73 14.16 6.05 5.12 12.70 -7.28 -13.27 4.71 5.63 0.27 13.65 0.55 0.57 100.00 62.50 Calrossie Partners Fund - 2.91 7.78 12.15 2.91 17.35 13.89 7.71 19.29 -10.26 -35.06 7.13 9.42 0.59 16.24 0.80 0.78 100.00 67.24 ChapelGate Credit Opportunity Fund Ltd. 252.590 4.13 5.02 12.94 4.13 21.54 17.83 14.64 12.94 1.12 -4.23 4.01 3.79 0.23 21.11 0.56 0.45 100.00 89.53 CI Global Opportunities Fund C$ 14.620 1.21 0.27 -0.44 1.21 1.45 -0.61 16.72 9.29 -7.32 -39.28 5.15 6.35 -0.11 1.66 -0.21 -0.32 89.67 58.02 CI Global Opportunities Fund U$ 21.160 0.72 0.47 0.12 0.72 1.23 1.47 6.66 6.77 -6.55 -46.22 6.46 7.76 0.30 0.67 0.44 0.29 94.95 52.23 Curvature Market Neutral Fund A 41.340 -0.31 -4.87 -2.65 -0.31 5.38 - 6.26 11.65 -2.65 -5.61 7.00 - -0.24 5.83 -0.33 -0.15 94.39 67.74 DKAM Capital Ideas Fund 47.500 5.06 6.04 13.08 5.06 8.01 12.91 24.93 24.79 -8.15 -11.98 9.17 11.62 0.79 6.53 0.84 0.55 100.00 73.08 Dynamic Alpha Performance Fund Series A 422.011 3.11 2.31 4.60 3.11 7.44 6.26 6.92 11.78 -8.29 -15.50 7.39 7.14 0.03 7.38 0.04 0.42 98.39 60.94 Dynamic Alpha Performance Fund Series F - 3.04 2.45 5.02 3.04 8.55 7.38 6.92 12.39 -7.60 -15.12 7.32 7.02 0.02 8.51 0.03 0.41 100.00 59.52 Dynamic Alpha Performance Fund Series FH U$ - 3.13 1.02 - 3.13 - - - -2.05 - - - 100.00 60.00 Dynamic Alpha Performance Fund Series H - 2.97 0.63 3.41 2.97 - - - -2.28 - - - 100.00 62.50 Dynamic Alpha Performance Fund Series T 8.460 3.03 2.29 4.53 3.03 7.44 - 3.89 8.11 -8.28 -8.47 7.44 - 0.02 7.40 0.03 0.40 98.34 52.94 Dynamic Contrarian Fund 25.457 -0.91 -2.68 -4.38 -0.91 -9.77 -7.48 1.51 35.56 -39.54 -63.12 3.09 19.95 0.15 -10.05 0.46 0.55 55.29 52.22 Dynamic Income Opportunities Fund 47.008 3.84 2.38 4.01 3.84 4.79 10.23 7.76 18.60 -4.17 -29.50 6.96 9.75 0.32 4.19 0.44 0.37 100.00 65.38 Dynamic Power Emerging Markets Fund Series A 16.735 1.65 -3.14 -0.54 1.65 -2.90 -8.63 -3.75 24.72 -29.98 -74.27 19.97 19.22 0.49 -3.82 0.24 0.50 31.95 61.36 Dynamic Power Emerging Markets Fund Series C - 1.73 -3.07 -0.48 1.73 -2.83 -7.36 -2.35 30.13 -29.82 -74.27 20.01 20.09 0.50 -3.77 0.24 0.50 35.49 61.36 Dynamic Power Hedge Fund Series C - 2.47 1.00 9.29 2.47 -10.79 -4.49 15.94 47.84 -38.65 -79.61 20.99 29.51 1.44 -13.49 0.67 0.43 58.94 55.56
H E D G E F U N D P E R F O R M A N C E (as of January 31, 2013)
Fund Name Asset Size ($MM) 1 Month 3 Month 6 Month YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. (3 Year) Worst 6 Mo. (3 Year) Max. Draw Down Std. Dev. (1 Year) Std. Dev. (3 Year) Beta (1 Year, TSX) Alpha (%) (1 Year, TSX) Correl. (1 Year, TSX) Correl. (1 Year, S&P500) % High Water- mark % Pos. Month Since Inc.
Enso Global Fund Class U - -1.46 -7.78 -10.24 -1.46 -36.63 - -49.57 -10.24 -52.81 -68.05 23.55 - 1.73 -39.88 0.71 0.38 31.95 30.00 Enso Global Fund F 26.720 -1.33 -7.49 -9.59 -1.33 -35.66 -19.43 -0.25 94.63 -55.97 -74.35 23.57 37.32 1.73 -38.91 0.71 0.38 25.65 56.78 Exemplar Diversified Portfolio Series A 43.210 3.04 1.91 -9.00 3.04 -9.06 -0.35 0.86 17.83 -16.67 -21.78 13.30 12.30 -0.80 -7.56 -0.58 -0.50 81.02 51.11 Exemplar Diversified Portfolio Series F - 3.13 -0.52 -0.79 3.13 -0.46 - 7.85 18.18 -9.36 -9.36 10.25 - -0.17 -0.14 -0.16 0.06 94.13 56.25 Exemplar Leaders Fund Series A 25.990 4.32 -1.54 3.54 4.32 9.10 9.45 2.12 23.19 -13.65 -39.26 12.33 13.68 0.76 7.67 0.60 0.67 98.46 60.94 Exemplar Leaders Fund Series F - 4.38 14.27 -1.57 4.38 6.28 14.54 1.38 21.62 -13.19 -38.51 15.93 13.36 -0.48 7.18 -0.29 0.25 95.23 60.78 Fairlane A Plus Bond Hedged Fund - 1.11 2.52 6.11 1.11 11.53 - 10.10 7.31 2.59 -1.51 3.43 - 0.25 11.06 0.71 0.76 100.00 84.21 Fiera Global Macro Fund Class A 0.950 1.60 2.64 3.26 1.60 4.03 -2.29 -2.36 3.47 -6.83 -14.86 5.78 5.23 -0.15 4.31 -0.24 -0.44 91.99 40.48 Fiera Global Macro Fund Class F 1.730 1.70 2.93 3.83 1.70 5.22 -1.20 -1.18 4.06 -6.29 -14.29 5.79 5.28 -0.15 5.50 -0.25 -0.44 93.48 59.32 Fiera Long Short Equity Fund Class A - 3.21 5.92 6.22 3.21 - - - -5.71 - - - 100.00 63.64 Fiera Market Neutral Equity Fund Class A 34.240 0.78 1.00 0.46 0.78 -5.22 -5.75 -1.12 11.26 -14.93 -21.62 4.55 7.11 0.31 -5.80 0.65 0.60 80.05 50.91 Fiera Market Neutral Equity Fund Class F 47.900 0.87 1.27 1.01 0.87 -4.15 -4.72 0.38 11.79 -14.45 -20.34 4.55 7.11 0.31 -4.73 0.65 0.60 81.72 55.56 Fiera Tactical Bond Yield Fund Class A 81.019 0.67 0.62 0.62 0.67 3.95 - 2.41 4.68 -1.16 -1.20 2.48 - -0.11 4.16 -0.42 -0.17 99.92 73.68 Formula Growth Alpha II Fund Class B 37.600 1.19 9.20 11.98 1.19 14.65 - 6.68 26.68 -8.92 -17.40 8.71 - 0.33 14.03 0.37 0.32 100.00 57.14 Formula Growth Global Opportunities Fund Cl. S C$ 22.600 5.19 16.09 24.42 5.19 16.22 1.50 5.11 24.42 -19.87 -24.00 13.28 14.14 0.78 14.76 0.57 0.46 95.76 61.22 Formula Growth Hedge Fund Class F C$ 181.900 2.30 10.94 15.73 2.30 9.64 6.04 17.81 28.39 -19.19 -20.73 9.96 14.97 0.41 8.87 0.40 0.37 100.00 64.23 Formula Growth Hedge Fund Class F U$ - 1.87 11.00 16.01 1.87 10.29 8.31 22.93 33.34 -24.33 -25.96 11.95 20.93 0.86 8.68 0.70 0.67 100.00 69.67 Friedberg Asset Allocation Fund 54.990 0.91 5.03 3.31 0.91 -8.62 9.65 11.08 12.87 -11.55 -14.61 13.42 12.13 -0.17 -8.30 -0.13 -0.14 91.38 65.79 Friedberg Global Macro Hedge Fund U$ 282.900 7.39 5.87 16.36 7.39 17.18 24.01 25.95 37.48 -10.56 -21.74 30.23 27.78 0.52 16.20 0.17 -0.20 100.00 60.87 Front Street Canadian Energy Resource Fund Ser B 17.290 -2.85 -11.34 10.74 -2.85 -37.69 -14.97 4.43 65.26 -43.97 -72.55 34.76 33.97 3.02 -43.36 0.84 0.36 38.98 63.54 Front Street Canadian Energy Resource Fund Ser F 1.170 -2.76 -11.08 11.40 -2.76 -37.27 - -14.25 61.91 -43.69 -66.67 34.86 - 3.02 -42.94 0.84 0.36 39.22 54.84 Front Street Canadian Hedge Fund Series B 108.030 1.08 0.20 5.66 1.08 -2.99 -0.31 10.84 34.93 -26.95 -43.40 10.16 16.65 0.93 -4.73 0.89 0.54 74.27 63.98 Front Street Growth and Income Fund Series A (LL) 9.630 0.51 2.75 4.47 0.51 -8.86 - -12.39 4.47 -12.76 -21.51 10.84 - 1.01 -10.75 0.91 0.70 82.01 44.44 FrontFour Opportunity Fund - 5.93 6.90 10.84 5.93 15.81 - 12.78 17.94 0.99 -5.84 8.34 - 0.51 14.85 0.59 0.67 100.00 68.42 frontierAlt Global Dividend Fund 4.050 5.03 8.80 11.89 5.03 11.94 3.14 -10.00 16.08 -13.47 -61.69 10.91 12.24 0.81 10.42 0.72 0.90 51.95 54.17 Garrison Hill Fund Series A - -0.69 -0.48 -1.93 -0.69 -5.07 - -4.69 -1.09 -3.36 -5.07 1.70 - 0.00 -5.07 0.01 -0.33 94.93 23.08 Garrison Hill Fund Series A (Class G) US$ - -0.76 -0.68 -2.38 -0.76 -5.92 - -5.47 -1.56 -3.70 -5.92 1.71 - 0.00 -5.92 0.01 -0.30 94.08 23.08 Garrison Hill Fund Series F - -0.59 -0.19 -1.40 -0.59 -4.10 - -3.79 -0.57 -2.99 -4.27 1.74 - 0.00 -4.10 0.01 -0.31 95.90 30.77 Garrison Hill Macro Opportunities LP - -0.62 -0.20 -1.45 -0.62 -4.15 3.34 1.56 14.77 -8.18 -11.49 1.76 6.31 0.00 -4.15 0.02 -0.30 88.66 54.93 GFM 130/30 Fund - 2.15 3.35 12.28 2.15 -1.81 4.60 10.49 25.56 -16.18 -20.72 14.24 13.58 1.41 -4.46 0.96 0.68 89.01 59.62 GFM Dividend Income Fund - 2.81 3.93 9.38 2.81 4.59 - 2.46 15.47 -4.87 -12.73 9.89 - 0.93 2.85 0.91 0.70 100.00 47.37 GFM Market Neutral Fund - 1.76 3.07 3.23 1.76 -2.52 0.15 5.54 8.41 -5.57 -8.81 4.87 5.12 0.35 -3.18 0.70 0.51 94.22 55.77 Goodwood Fund Class A 16.490 1.29 -1.82 4.28 1.29 6.81 -5.06 10.09 12.66 -21.03 -55.80 10.61 13.23 0.77 5.37 0.71 0.69 62.52 61.54 Goodwood Fund Class B 45.110 1.29 -1.82 4.28 1.29 6.89 -5.04 0.51 12.72 -21.03 -55.41 10.61 13.23 0.77 5.45 0.71 0.69 63.13 57.14 Goodwood Value Fund A 14.700 1.35 -1.93 3.68 1.35 5.89 -5.37 1.55 12.19 -20.99 -56.29 10.55 12.79 0.77 4.45 0.71 0.69 60.24 57.55 Goodwood Value Fund F 81.780 1.36 -1.78 4.01 1.36 6.66 -4.68 3.39 12.64 -20.71 -62.58 10.55 12.80 0.77 5.22 0.71 0.69 53.03 59.68 High Yield Fund A C$ 238.590 0.65 0.68 3.25 0.65 1.08 4.50 5.71 10.43 -5.60 -9.27 3.35 5.49 0.28 0.55 0.81 0.65 96.24 65.38 High Yield Fund A U$ 304.240 0.57 1.08 2.77 0.57 0.83 4.19 6.09 10.08 -5.89 -8.65 3.36 5.58 0.28 0.30 0.80 0.62 95.76 70.00 High Yield Fund F 95.570 0.73 1.14 3.93 0.73 2.15 5.20 6.27 10.87 -5.83 -9.82 3.33 5.64 0.29 1.61 0.83 0.64 96.99 67.23 Hillsdale Canadian Long/Short Equity Fund Class A 5.820 1.49 -3.16 1.35 1.49 3.15 1.28 7.16 16.46 -8.39 -24.49 10.05 9.52 0.56 2.10 0.54 0.44 82.67 57.96 Hillsdale Enhanced Income Fund Class A 6.790 3.48 3.49 3.98 3.48 10.42 - 5.14 7.66 -7.65 -7.65 6.44 - 0.40 9.67 0.60 0.60 100.00 62.96 IA Multi-Strategy 1.490 -1.69 -2.28 -3.57 -1.69 -4.15 -2.50 -3.31 4.92 -6.92 -36.78 2.86 3.93 0.07 -4.28 0.23 0.11 63.22 45.00 IMFC Global Concentrated Program - 4.97 3.57 -5.60 4.97 -5.19 1.09 3.65 13.31 -13.50 -15.88 13.03 11.45 -0.69 -3.90 -0.51 -0.42 88.69 52.17 IMFC Global Investment Program - 3.16 2.25 -8.38 3.16 -7.87 0.50 8.88 18.72 -16.05 -21.06 13.21 12.41 -0.79 -6.39 -0.58 -0.49 81.95 48.61 Inflection Strategic Opportunities Fund Series A - 1.77 4.23 9.91 1.76 15.87 - 7.60 11.47 -10.47 -12.00 4.41 - 0.32 15.27 0.71 0.57 100.00 64.29 JC Clark Focused Opportunities Fund (Class A) 15.364 2.20 6.53 19.24 2.20 19.72 3.06 7.25 19.24 -11.47 -14.02 10.87 8.29 0.48 18.82 0.43 0.30 100.00 64.13 JC Clark Patriot Trust (Class B) 26.607 2.04 2.15 8.31 2.04 -9.52 -1.09 8.16 20.92 -17.01 -29.64 14.24 12.89 1.33 -12.02 0.90 0.70 77.82 65.00 JC Clark Preservation Trust (Class B) 66.455 3.14 9.24 18.60 3.14 17.18 -2.31 10.93 18.60 -9.84 -22.61 8.54 7.82 0.41 16.41 0.46 0.31 91.92 58.79 JM Catalyst Fund 13.300 2.74 3.47 5.65 2.74 13.31 13.72 12.13 11.00 2.10 -3.31 2.96 4.80 0.10 13.12 0.31 0.46 100.00 78.69 KCS Great White North Fund Class A - 0.89 2.05 2.02 0.89 0.98 0.88 1.93 5.48 -3.43 -4.31 1.88 2.47 0.10 0.79 0.51 0.46 97.98 61.70
H E D G E F U N D P E R F O R M A N C E (as of January 31, 2013)
Fund Name Asset Size ($MM) 1 Month 3 Month 6 Month YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. (3 Year) Worst 6 Mo. (3 Year) Max. Draw Down Std. Dev. (1 Year) Std. Dev. (3 Year) Beta (1 Year, TSX) Alpha (%) (1 Year, TSX) Correl. (1 Year, TSX) Correl. (1 Year, S&P500) % High Water- mark % Pos. Month Since Inc.
KCS Great White North Fund Class B - 0.84 1.90 1.73 0.84 0.42 - 0.01 5.23 -3.71 -4.93 1.88 - 0.10 0.23 0.51 0.46 97.02 53.13 KCS Great White North Fund Class F - 0.93 2.19 2.30 0.93 1.55 1.42 2.38 5.72 -3.16 -3.67 1.88 2.46 0.10 1.36 0.51 0.46 98.96 63.83 KCS Great White North Fund Class O - 0.98 2.33 2.59 0.98 2.13 - 1.52 2.59 -2.89 -3.04 1.88 - 0.10 1.94 0.51 0.46 99.93 58.33 Kensington Global Private Equity Fund Class E+G 58.000 0.70 2.62 4.26 0.70 4.03 11.35 3.29 20.22 -5.11 -15.93 6.48 9.74 -0.24 4.48 -0.36 -0.21 99.99 47.14 Kensington Hedge Fund 1 Series A+E+F - 1.55 2.45 8.59 1.55 14.21 - 11.36 8.90 2.93 -0.26 3.09 - 0.09 14.04 0.30 -0.08 100.00 86.67 King & Victoria Fund LP - 5.50 20.15 25.63 5.50 32.99 28.67 25.44 38.14 -11.98 -32.14 11.07 13.70 0.47 32.11 0.41 0.35 100.00 76.19 King & Victoria RSP Fund Class A Units - 5.50 20.15 25.63 5.50 31.99 28.16 15.86 37.83 -11.99 -33.73 11.20 13.67 0.47 31.11 0.40 0.33 100.00 70.71 Landry Morin Long Short Momentum Fund Series A - 0.74 -2.73 -0.37 0.74 3.13 1.02 -1.89 11.00 -10.47 -27.24 5.54 8.28 -0.11 3.34 -0.19 -0.28 79.53 50.62 Landry Morin Long Short Momentum Fund Series B - 1.05 -2.48 -0.16 1.05 3.20 - -3.22 8.33 -7.14 -8.90 5.57 - -0.10 3.39 -0.17 -0.25 96.25 42.86 Landry Morin Long Short Momentum Fund Series F 29.100 3.50 0.10 2.82 3.50 6.98 2.95 4.01 11.59 -10.02 -26.44 6.37 8.49 -0.04 7.06 -0.07 -0.08 85.56 56.41 Landry Morin Long Short Momentum Fund Series G - -0.62 -3.97 -1.49 -0.62 2.21 0.49 -0.11 10.48 -10.24 -11.30 5.59 8.16 -0.14 2.47 -0.24 -0.37 92.65 51.35 Landry Morin Long Short Momentum Fund Series I - -2.24 -5.29 -2.47 -2.24 2.01 2.03 -0.85 12.17 -9.56 -25.62 6.12 8.40 -0.18 2.35 -0.29 -0.46 84.72 53.95 Lightwater Conservative Long/Short - Class A - 6.17 -2.42 1.77 6.17 -6.65 -7.21 -2.92 18.62 -19.67 -33.19 12.46 11.58 0.71 -7.98 0.56 0.58 70.94 55.74 Lycos Value Fund Class O 1.300 -6.16 -0.35 -12.27 -6.16 9.90 16.47 14.93 68.00 -14.32 -22.62 22.11 24.34 -0.99 11.76 -0.43 0.05 86.26 61.22 Lycos Value Fund Class P 0.800 0.50 1.49 3.00 0.50 6.03 6.02 6.01 3.01 2.90 0.00 0.08 0.08 0.00 6.03 -0.18 -0.51 100.00 100.00 Majestic Global Diversified Fund - 3.30 -1.95 -15.07 3.30 -5.75 3.16 2.39 25.18 -20.07 -22.04 23.43 17.91 -0.95 -3.97 -0.39 -0.33 80.53 50.94 Majestic Global Diversified Fund Series A - 3.27 -2.02 -15.06 3.27 -5.89 5.27 4.00 33.05 -20.03 -22.03 23.57 19.46 -0.94 -4.13 -0.39 -0.34 80.52 51.92 Majestic Global Diversified Fund Series I - 3.46 -1.47 -14.52 3.46 -3.65 - -6.96 15.74 -20.22 -20.34 25.63 - -1.09 -1.61 -0.41 -0.37 82.42 48.00 Man AHL Diversified (Canada) Fund Class A C$ - 2.44 -1.21 -3.89 2.44 -6.18 -1.51 2.21 12.75 -9.23 -23.59 8.31 13.68 0.23 -6.61 0.27 0.39 78.28 50.00 Man AHL Diversified (Canada) Fund Class C C$ - 2.56 -0.85 -3.18 2.56 -4.79 - -1.34 10.62 -8.56 -17.76 8.30 - 0.24 -5.24 0.28 0.40 84.41 45.16 Man AHL Diversified (Canada) Fund Class F - 2.53 -0.93 -3.33 2.53 -5.11 -0.41 3.02 13.36 -8.73 -20.33 8.30 13.69 0.24 -5.56 0.28 0.40 81.72 52.05 Man AHL Diversified (Canada) Fund Class I - 2.51 -1.00 -3.48 2.51 -5.39 -0.70 3.04 13.21 -8.85 -21.20 8.30 13.68 0.23 -5.82 0.28 0.40 80.79 52.00 Man AHL Diversified Futures Ltd. - 2.92 -0.64 -3.03 2.92 -5.07 -1.54 2.35 10.00 -8.03 -20.36 7.67 11.09 0.16 -5.37 0.21 0.52 81.96 53.13 Man Canada AHL Alpha Fund Class A - 1.48 -1.33 -3.49 1.48 -5.49 -2.03 -2.78 8.23 -7.19 -16.28 6.13 8.82 0.17 -5.81 0.26 0.37 84.95 47.62 Man Canada AHL Alpha Fund Class F - 1.56 -1.08 -3.03 1.56 -4.59 -1.21 -2.03 8.52 -6.75 -14.61 6.12 8.81 0.17 -4.91 0.27 0.38 86.74 50.00 Man Canada AHL DP Investment Fund Class A - 2.43 -1.35 -4.00 2.43 -6.39 -1.53 -1.53 12.49 -9.32 -20.55 8.32 13.17 0.23 -6.82 0.27 0.39 81.38 41.67 Man Canada AHL DP Investment Fund Class B - 2.44 -1.34 -3.97 2.44 -6.36 -1.49 -1.49 12.52 -9.30 -20.50 8.32 13.17 0.23 -6.79 0.27 0.39 81.44 41.67 Man Canada AHL DP Investment Fund Class C - 2.11 -1.65 -4.29 2.11 -6.67 -1.61 -1.61 12.51 -9.30 -20.51 8.20 13.15 0.23 -7.10 0.27 0.38 81.16 41.67 Man Canada AHL DP Investment Fund Class D - 2.44 -1.34 -3.98 2.44 -6.37 - -4.89 4.62 -9.30 -20.51 8.32 - 0.23 -6.80 0.27 0.39 81.43 42.86 Man Canada AHL DP Investment Fund Class F - 2.55 -1.00 -3.33 2.55 -5.10 -0.17 -0.17 13.26 -8.70 -18.27 8.32 13.19 0.24 -5.55 0.28 0.39 83.84 44.44 Man Canada AHL DP Investment Fund Class G - 2.42 -1.38 -4.06 2.42 -6.54 - -6.35 4.04 -9.40 -18.03 8.32 - 0.23 -6.97 0.27 0.39 83.95 44.00 Man Canada AHL DP Investment Fund Class I - 2.52 -1.07 -3.45 2.52 -5.36 -0.44 -0.44 13.11 -8.82 -18.72 8.31 13.18 0.24 -5.81 0.28 0.39 83.34 44.44 Man Canada AHL DP Investment Fund Class O - 0.69 -3.01 -7.16 0.69 -12.27 -7.09 -7.09 9.27 -12.34 -30.11 7.56 13.06 0.19 -12.63 0.24 0.44 70.37 38.89 Man Canada AHL DP Investment Fund Class P - 0.69 -3.01 -7.15 0.69 -12.24 -7.05 -7.05 9.27 -12.34 -30.04 7.55 13.06 0.19 -12.60 0.25 0.44 70.44 38.89 Man Canada AHL DP Investment Fund Class Q - 0.69 -3.01 -7.15 0.69 -12.21 -7.01 -7.01 9.28 -12.29 -29.94 7.56 13.05 0.19 -12.57 0.24 0.45 70.54 38.89 Man Canada AHL DP Investment Fund Class R - 0.82 -2.65 -6.47 0.82 -10.98 -5.91 -5.91 9.97 -11.70 -28.01 7.56 13.05 0.19 -11.34 0.25 0.45 72.62 41.67 Man Canada AHL DP Investment Fund Class S - 0.69 -3.02 -7.17 0.69 -12.27 - -10.12 4.68 -12.35 -29.16 7.55 - 0.19 -12.63 0.24 0.44 71.32 39.29 Man Canada AHL DP Investment Fund Class T - 0.68 -3.05 -7.24 0.68 -12.39 - -12.06 -0.94 -12.41 -26.21 7.56 - 0.19 -12.75 0.24 0.44 74.29 40.00 Marret High Yield Hedge LP Class B 57.920 -0.02 0.09 1.83 -0.02 1.71 5.38 10.17 8.19 -3.72 -7.60 1.76 4.69 0.11 1.50 0.62 0.03 99.98 75.41 Meson Capital Partners Fund - 5.70 -2.31 -14.35 5.70 -37.23 -16.80 32.07 21.37 -27.28 -55.15 22.34 35.72 1.10 -39.29 0.48 0.73 47.41 53.19 Milford Capital Growth Fund - 0.32 3.11 8.54 0.32 11.77 25.26 17.67 39.18 0.96 -49.99 4.95 10.41 0.20 11.39 0.39 -0.09 100.00 71.76 Niagara Discovery Fund 15.800 1.70 0.37 3.86 1.70 1.17 8.32 13.00 27.51 -9.14 -12.76 6.80 15.01 0.21 0.78 0.29 -0.09 93.60 56.00 Niagara Legacy Class B Fund 77.300 7.60 -0.68 1.72 7.60 14.64 13.42 17.84 60.16 -25.42 -26.57 18.25 31.30 -0.98 16.48 -0.52 -0.47 88.80 60.44 Norrep Market Neutral Income Fund 5.670 0.20 0.05 0.34 0.20 8.59 - 11.57 13.81 0.34 -2.99 6.76 - -0.36 9.27 -0.52 -0.28 97.20 64.71 Northern Rivers Conservative Growth Fund LP 13.420 4.77 -2.90 0.67 4.77 9.93 14.32 8.58 31.57 -12.83 -49.62 13.35 14.48 0.66 8.69 0.48 0.65 96.87 63.22 Northern Rivers Global Energy Fund LP 3.977 1.10 -2.33 8.69 1.10 4.13 10.60 4.86 44.12 -28.69 -61.25 17.71 22.14 1.20 1.88 0.66 0.39 78.54 63.22 Northern Rivers Innovation RSP Fund 5.140 1.10 -11.17 -9.88 1.10 2.08 4.76 0.82 49.11 -25.98 -71.54 17.74 26.64 0.00 2.08 0.00 0.18 44.66 52.34 Palos Income Fund, L.P. - 3.52 4.00 9.03 3.52 6.04 8.94 11.34 18.90 -13.58 -40.08 7.85 9.74 0.72 4.69 0.89 0.63 99.96 70.80 Palos Majestic Commodity Fund LP - 2.40 -3.13 -16.40 2.40 -6.92 2.38 1.91 24.95 -20.31 -22.74 24.48 18.36 -1.03 -4.99 -0.41 -0.36 79.11 50.94
H E D G E F U N D P E R F O R M A N C E (as of January 31, 2013)
Fund Name Asset Size ($MM) 1 Month 3 Month 6 Month YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. (3 Year) Worst 6 Mo. (3 Year) Max. Draw Down Std. Dev. (1 Year) Std. Dev. (3 Year) Beta (1 Year, TSX) Alpha (%) (1 Year, TSX) Correl. (1 Year, TSX) Correl. (1 Year, S&P500) % High Water- mark % Pos. Month Since Inc.
Pathway Multi SF Explorer Series A Rollover MIN001 - -3.31 -9.92 -25.57 -3.31 -49.25 -30.66 -17.37 68.44 -41.49 -88.42 22.94 33.01 1.25 -51.59 0.53 0.55 11.58 44.68 Performance Diversified Fund Trust Cl A - -0.78 -1.37 -2.42 -0.78 0.52 2.37 4.84 10.89 -6.79 -7.47 3.35 4.51 -0.02 0.56 -0.06 0.03 93.74 64.58 Performance Growth Fund Class A - 2.75 4.37 6.31 2.75 1.01 3.70 7.12 19.48 -14.71 -32.69 9.53 10.24 -0.06 1.12 -0.06 -0.04 85.81 69.61 Performance Growth Fund Trust Class A - 2.76 4.47 6.36 2.76 1.14 1.14 4.34 18.86 -15.22 -21.78 9.58 9.74 -0.07 1.27 -0.07 -0.04 85.08 61.22 Picton Mahoney Diversified Strategies Fund Class A 12.730 2.62 3.61 7.14 2.62 7.33 7.22 6.86 13.39 -7.99 -7.99 4.39 5.92 0.37 6.64 0.83 0.75 100.00 62.16 Picton Mahoney Global Long Short Equity Fd Cl A C$ 6.060 5.50 6.96 11.02 5.50 11.55 8.91 1.06 17.41 -7.72 -25.98 7.61 8.48 0.49 10.63 0.63 0.71 100.00 58.06 Picton Mahoney Global Long Short Resource Cl A 1.890 2.53 2.93 8.03 2.53 1.07 - 0.91 9.50 -9.98 -12.13 10.25 - 0.89 -0.60 0.85 0.55 98.65 64.29 Picton Mahoney Global Market Netural Equ Cl A C$ 30.040 2.75 2.18 2.77 2.75 4.36 5.38 1.13 6.41 -1.14 -17.21 3.74 3.47 0.04 4.28 0.10 0.18 100.00 56.45 Picton Mahoney Income Opportunities Fund Class A 163.060 1.91 2.81 5.76 1.91 9.59 7.18 7.37 9.79 -8.16 -9.14 3.41 5.82 0.16 9.29 0.45 0.59 100.00 72.97 Picton Mahoney Long Short Equity Fund Class A 120.230 2.07 2.84 7.00 2.07 4.59 6.30 11.14 19.11 -10.78 -24.86 5.73 8.00 0.55 3.56 0.93 0.74 99.38 70.59 Picton Mahoney Market Neutral Equity Fund Class A 325.690 0.51 0.67 1.24 0.51 1.78 2.69 8.95 7.37 -2.29 -4.63 1.90 3.26 0.06 1.67 0.31 0.30 100.00 68.24 PIE Alternative Strategies Class F-1 Series A - -0.58 -0.12 -1.23 -0.58 -5.10 2.37 7.76 14.27 -11.39 -14.87 4.61 8.97 0.16 -5.40 0.33 0.03 89.40 58.00 Primevestfund 2.780 1.65 1.40 7.69 1.65 -17.82 -5.06 10.91 43.65 -23.69 -41.34 16.98 18.98 1.48 -20.60 0.85 0.60 64.00 62.64 Radin Global Opportunities Fund Founders Class F - 5.40 12.03 - 5.40 - - - 0.00 - - - 100.00 100.00 RDA Mons Regalis Multi-Strategy LP - -4.11 -4.16 -6.03 -4.11 4.52 - 7.58 12.35 -6.03 -7.68 8.12 - -0.14 4.78 -0.17 0.16 92.32 56.00 Rosalind Capital Partners L.P. - 9.01 10.00 14.86 9.01 8.36 -1.00 13.70 33.00 -38.79 -40.85 12.79 18.35 0.15 8.08 0.12 0.05 67.94 62.86 Ross Smith Capital Investment Fund 24.264 0.91 2.46 4.92 0.91 5.37 8.50 10.86 11.21 0.30 -17.17 2.41 3.98 0.02 5.33 0.08 -0.31 100.00 68.42 Ross Smith Opportunities Fund 14.058 1.38 5.98 9.75 1.38 13.26 - 11.89 9.75 1.73 -1.18 3.88 - 0.20 12.88 0.49 0.12 100.00 76.92 RPH Global Sovereign Bond Pooled Fund - -1.38 -1.38 3.05 -1.38 1.23 - 3.09 5.14 -2.05 -4.02 4.54 - 0.21 0.84 0.45 0.09 98.62 62.50 Salida Strategic Growth A (formerly Multi Strategy 117.630 -7.37 -22.16 -24.29 -7.37 -38.64 -25.45 5.84 77.27 -54.10 -74.79 22.42 34.85 1.22 -40.93 0.53 0.35 25.21 61.62 Salida Wealth Preservation Fund Class A - -1.14 -3.57 -1.15 -1.14 -13.02 -3.89 -3.89 18.87 -14.69 -27.89 7.74 10.01 0.54 -14.03 0.68 0.17 72.11 50.00 SEI Futures Index Fund Class D 0.010 -0.33 -1.45 -5.07 -0.33 -8.26 - -2.91 4.04 -7.21 -9.73 3.14 - -0.25 -7.79 -0.76 -0.69 90.27 33.33 SEI Futures Index Fund Class E - -0.29 -1.32 -4.83 -0.29 -7.78 - -2.39 4.32 -6.95 -9.03 3.13 - -0.25 -7.31 -0.77 -0.69 90.97 33.33 SEI Futures Index Fund Class F 0.230 -0.17 -0.95 -4.17 -0.17 -6.61 0.13 1.47 4.98 -6.37 -8.09 3.15 4.33 -0.25 -6.14 -0.76 -0.69 92.60 50.62 SEI Futures Index Fund Class O 26.950 -0.10 -0.76 -3.74 -0.10 -5.64 1.18 2.51 5.53 -5.88 -8.66 3.15 4.33 -0.25 -5.17 -0.77 -0.69 93.51 54.48 SEI Futures Index Fund Class P 1.080 -0.24 -1.18 -4.55 -0.24 -7.22 -0.49 0.89 4.65 -6.68 -9.48 3.14 4.32 -0.25 -6.75 -0.77 -0.69 91.72 49.54 Seven Seas Capital Appreciation Fund 46.000 0.47 1.85 3.57 0.47 3.03 - 5.52 12.01 -2.29 -3.54 4.01 - 0.21 2.64 0.51 0.15 100.00 51.85 SG US Market Neutral Fund 20.530 1.74 2.55 4.45 1.74 4.08 2.87 0.18 6.35 -3.30 -12.63 3.87 3.99 0.04 4.00 0.11 0.32 100.00 52.94 SG US Market Neutral Fund Class G - 1.78 2.56 4.49 1.78 4.35 - 4.97 4.49 -1.13 -1.92 3.87 - 0.04 4.27 0.09 0.32 100.00 57.14 SG US Market Neutral Fund Class U - 1.68 2.58 4.24 1.68 3.48 - 4.29 6.39 -1.69 -2.27 3.80 - 0.04 3.40 0.11 0.32 100.00 55.00 Sherpa Diversified Returns Fund Class A - 1.73 2.47 3.97 1.73 6.84 4.61 2.97 11.56 -10.76 -21.95 4.66 7.29 0.35 6.18 0.73 0.99 100.00 67.86 Sherpa Market Neutral Income Fund Class A - 0.08 0.52 1.00 0.08 2.59 - 2.39 5.64 -5.30 -6.90 0.71 - 0.01 2.57 0.15 0.28 98.10 87.50 Silvercove Hard Asset Fund L.P. 20.943 1.07 -0.51 4.42 1.07 2.51 4.80 6.25 13.92 -8.85 -10.98 6.24 7.28 0.39 1.78 0.60 0.63 98.43 65.00 SMI Defensive LP 139.700 -2.55 -0.85 0.79 -2.55 6.48 11.05 29.98 10.19 0.79 -2.55 4.54 3.41 -0.27 6.99 -0.57 -0.75 97.45 94.12 SMI Income LP 2.600 2.82 7.29 8.41 2.82 - - - 0.00 - - - 100.00 100.00 SMI Opportunities LP 41.700 -2.62 1.36 10.99 -2.62 56.06 22.85 40.16 40.60 -3.77 -7.37 13.62 12.77 -0.73 57.43 -0.52 -0.65 97.38 83.56 Spartan Eleven Fund - 1.69 1.90 7.19 1.69 6.66 - 13.97 12.86 -1.96 -4.15 6.00 - 0.57 5.59 0.92 0.79 100.00 80.00 Spartan Humber Global Opportunity Fund - 0.91 1.94 -0.73 0.91 - - - -3.01 - - - 98.87 60.00 Spartan Multi Strategy Fund Class A - 0.57 -1.24 -2.76 0.57 -8.24 -2.23 7.52 10.30 -6.06 -15.26 2.87 4.33 0.18 -8.58 0.63 0.73 85.22 62.96 Spartan Noble Bay Energy Fund - -0.59 - - -0.59 - - - 0.00 Spartan Scale Opportunities Fund - 1.09 1.14 2.26 1.09 -3.36 - -1.31 8.38 -7.49 -9.10 7.05 - 0.62 -4.52 0.86 0.72 96.03 52.38 Spartan Teraz Fund - -1.22 -4.90 -2.75 -1.22 -13.09 - -9.15 1.70 -10.63 -13.82 11.19 - 0.63 -14.27 0.55 0.48 86.57 38.46 Sprott Absolute Return Income Fund Class A 41.083 2.28 3.14 4.72 2.28 7.59 - 4.86 6.59 -7.06 -7.12 2.08 - 0.03 7.53 0.14 0.24 100.00 72.41 Sprott Absolute Return Income Fund Class T 40.374 2.28 3.13 4.66 2.28 7.57 - 4.98 6.85 -7.16 -7.31 2.08 - 0.03 7.51 0.13 0.23 100.00 72.41 Sprott Bull/Bear RSP Fund Class A 81.314 -5.39 -17.22 -11.58 -5.39 -36.19 -9.48 5.85 30.35 -30.37 -50.61 20.12 24.36 0.96 -37.99 0.46 0.05 49.39 54.92 Sprott Hedge Fund L.P. Class A 301.818 -4.68 -16.94 -12.28 -4.68 -37.77 -9.92 12.71 32.52 -30.93 -52.16 19.20 25.16 0.82 -39.31 0.41 -0.02 47.84 58.50 Sprott Hedge Fund L.P. II Class A 272.969 -5.35 -17.74 -12.53 -5.35 -37.84 -10.15 2.69 30.76 -31.17 -51.73 19.54 24.42 0.80 -39.34 0.40 -0.03 48.27 52.80 Sprott Opportunities Hedge Fund Class A 56.846 3.93 4.62 5.08 3.93 -8.04 -2.04 11.75 10.60 -13.52 -19.15 8.56 10.03 0.42 -8.83 0.47 0.15 85.23 56.19 Sprott Opportunities RSP Fund 20.977 3.90 4.54 4.86 3.90 -8.38 -2.30 5.05 10.44 -13.62 -19.39 8.55 10.02 0.41 -9.15 0.47 0.15 84.84 50.00 Sprott Small Cap Hedge Fund 30.621 0.15 -0.15 6.04 0.15 -13.84 5.66 3.89 44.12 -18.87 -54.39 13.65 17.11 1.28 -16.24 0.91 0.51 73.29 59.72
H E D G E F U N D P E R F O R M A N C E (as of January 31, 2013)
Fund Name Asset Size ($MM) 1 Month 3 Month 6 Month YTD 1 Year 3 Year (Ann.) Since Inception (Ann.) Best 6 Mo. (3 Year) Worst 6 Mo. (3 Year) Max. Draw Down Std. Dev. (1 Year) Std. Dev. (3 Year) Beta (1 Year, TSX) Alpha (%) (1 Year, TSX) Correl. (1 Year, TSX) Correl. (1 Year, S&P500) % High Water- mark % Pos. Month Since Inc.
SW8 Strategy Fund LP Class A - 0.66 1.50 3.73 0.66 7.77 - 5.33 8.42 -5.86 -5.90 3.83 - -0.09 7.94 -0.24 -0.43 100.00 52.00 SW8 Strategy Fund LP Class B - 0.70 1.62 3.98 0.70 8.26 - 16.80 35.22 -5.63 -5.63 3.82 - -0.09 8.43 -0.24 -0.43 100.00 63.64 SW8 Strategy Trust Class A - 0.66 1.50 3.66 0.66 7.42 - 4.58 7.88 -6.36 -6.66 3.81 - -0.09 7.59 -0.24 -0.44 100.00 52.00 SW8 Strategy Trust Class B - 0.70 1.62 3.91 0.70 7.97 - 5.14 8.19 -6.05 -6.17 3.76 - -0.09 8.14 -0.24 -0.44 100.00 52.00 Tapestry Balanced Growth Private Port Corp Cl A 14.760 2.31 4.01 6.40 2.31 3.40 2.67 2.40 9.44 -6.05 -8.55 5.57 5.36 0.52 2.42 0.90 0.81 98.39 56.76 Tapestry Balanced Growth Private Port Corp Cl T 3.160 2.32 4.04 6.37 2.32 3.38 2.69 2.21 9.38 -5.98 -8.48 5.54 5.34 0.51 2.42 0.89 0.80 98.42 56.76 Tapestry Balanced Income Private Port Corp Cl A 7.550 1.70 3.16 5.38 1.70 5.27 2.86 2.86 7.17 -3.42 -5.18 4.48 4.01 0.21 4.88 0.44 0.41 100.00 63.89 Tapestry Balanced Income Private Port Corp Cl T 0.650 1.72 3.18 4.87 1.72 3.01 2.79 2.57 7.11 -3.45 -5.26 4.10 4.01 0.37 2.32 0.88 0.77 100.00 59.46 Tapestry Divers Income Private Port Corp Class A 5.550 1.43 2.62
