HedgeFund.

net | Regional Focus Report: India Focused Funds HFN

HFN HEDGEFUND.NET
Regional Focus Report
India Focused Funds

Overview: Hedge Funds Investing in India September 16, 2010

The HFN database tracks performance and assets of 40 fund
Figure 1: Distribution of Returns from Jan 01 – Aug 10
products that invest primarily in India’s markets and securities.
80
The relevant benchmark for these products and other hedge
funds investing in the country is the HFN India Index.
70
• The HFN India Index was +0.88% in August and +6.34%
YTD 2010. This compares to +3.25% YTD for the BSE
SENSEX, India’s primary equity market index, and 60
+1.89% YTD for the HFN Hedge Fund Aggregate Index.
• HFN estimates total assets in hedge funds invested 50
primarily in Indian markets and securities exceeded $9.5
billion at the end of August 2010.
40
• Since inception in January 2002 through August 2010, the
HFN India Index rose 334%, while the SENSEX rose 445% 30
and the HFN Hedge Fund Aggregate Index rose 93%.
India focused funds are among the better performing hedge 20
fund groups in 2010 and have produced nearly double the
returns of the SENSEX this year. However, since India fund
AUM peaked in December 2007, the HFN India Index has 10
declined 30% compared to an 11% decline in the SENSEX and
a 3% rise for the broad hedge fund industry. 0
The following pages break down the investor flow trends, r < - 4% - 4% <= r < - 2% - 2% <= r < 0% 0 <= r <= 2% 2% < r <= 4% r > 4%

performance of India focused funds and comparisons to other

emerging markets to explain the source of their differing HFN Ind ia Ind ex HFN A g g reg at e B SE SEN SEX
returns and current investor sentiment towards these funds.
HFN
Figures 2-3: Cumulative and Rolling 12month returns from Jan 01 - Aug 10 Hedge
600% HFN Fund S&P
Calculations are through 8/2010 India Aggregate BSE 1200
unless otherwise noted Index Index SENSEX Global
500% Latest Returns
Aug-10 0.88% 0.12% 0.92% -4.15%
Year-to-date 6.34% 1.89% 3.25% -7.59%
400%
Last 3 Months 5.67% 0.93% 6.42% 0.24%
Last 6 Months 9.05% 1.87% 9.75% -4.35%
300%
Last 9 Months 9.92% 3.28% 6.53% -5.44%
Last 12 Months (LTM) 18.22% 7.11% 15.10% 3.68%
Last 24 Months 11.07% 6.35% 23.81% -15.99%
200% Last 36 Months -8.20% 6.96% 17.71% -27.62%
Return Statistics
Avg Annual Cmpd Return from 1/2001 17.07% 8.31% 16.79% -1.11%
10 0 %
Avg Cmpd Monthly Return from 1/2001 1.32% 0.67% 1.30% -0.09%
Average Monthly Return, LTM 1.40% 0.57% 1.18% 0.30%
Cumulative Return from 1/2001 358.68% 116.26% 353.97% -10.22%
0%
Largest Monthly Gain from 1/2001 25.94% 5.14% 28.26% 10.96%
Largest Monthly Loss from 1/2001 -19.78% -6.01% -23.89% -19.05%
- 10 0 % % Down Months from 1/2001 33.65% 29.81% 37.93% 43.27%
J an- 01 M ar - 02 M ay - 03 J ul- 04 S ep- 05 Nov - 06 J an- 08 M ar - 09 M a y - 10
Risk Statistics
Annualized Standard Dev from 1/2001 26.18 14.56 27.02 17.34
HF N Ind ia Ind ex HF N A g g r eg at e B SE SEN SEX Annualized Standard Dev, LTM 15.49 12.32 17.77 18.94
Annualized Sharpe Ratio from 1/2001 0.75 1.01 0.54 -0.26
12 0 %
Annualized Sharpe Ratio LTM 1.34 1.52 0.60 0.02
Sortino Ratio (MAR=8%) Bottom 25% from 1/2001 -0.37 -0.61 0.44 -0.62
10 0 %
Sortino Ratio (MAR=8%) Middle 50% from 1/2001 -0.04 -0.11 0.44 -0.62
Sortino Ratio (MAR=8%) Top 25% from 1/2001 0.48 0.48 0.44 -0.62
80%
Downside Deviation(8%) Median from 1/2001 5.00% 2.92% 5.25% 4.14%
60%
Sortino Ratio (MAR = 8%) Bottom 25%, LTM 1.05 -1.12 0.57 -0.30
Sortino Ratio (MAR = 8%) Middle 50%, LTM 1.49 -0.18 0.57 -0.30
40%
Sortino Ratio (MAR = 8%) Top 25%, LTM 2.70 0.94 0.57 -0.30
Monthly Downside Deviation(8%) Median, LTM 2.50% 2.32% 3.26% 3.91%
20%
Maximum Drawdown from 1/2001 -60.46% -17.72% -56.17% -55.66%
Months in Max Drawdown 14 16 14 16
0% Months to Recover N/A 13 N/A N/A
Annual Returns
- 20% 2009 52.09% 19.43% 81.03% 32.32%
2008 -56.56% -15.75% -52.45% -41.92%
- 40% 2007 51.79% 10.55% 47.15% 7.53%
2006 28.05% 11.99% 46.70% 18.75%
- 60% 2005 23.54% 8.99% 42.33% 7.85%
2004 16.91% 9.51% 13.08% 8.99%
- 80% 2003 88.94% 21.18% 72.89% 26.38%
J an - 01 M ar - 02 M ay - 0 3 J u l - 04 S ep-05 N ov - 0 6 J a n - 08 M ar - 09 M ay - 10 2002 23.09% 5.74% 3.52% -23.37%
2001 NA 11.42% -17.87% -13.04%
HF N Ind ia Ind ex HF N A g g r eg at e B SE SEN SEX

© 2010 Channel Capital Group Inc. FOR DETAILS ON INDIA FOCUSED FUNDS IN THIS REPORT, CONTACT HEDGEFUND.NET AT +1 212 230 2211
Past performance is no guarantee of future returns
HedgeFund.net | Regional Focus Report: India Focused Funds HFN

Fund Characteristics Figure 4: LTM performance, through August 2010, ranked by percentile and $AUM
The aggregated qualitative details of India focused funds in the
HFN database give an indication of the predominant charac- India Focused Funds
< 20mm 20 - 100 100 - 500 500mm+
teristics of these products:
Total Funds 14 14 6 0
• India focused funds tend to be smaller than the average
10th Percentile 23.58% 39.29% 16.42% 0.00%
hedge fund and are among the smallest of any group. 25th Percentile 19.88% 22.23% 6.37% 0.00%
The average assets-in-strategy of India funds in the HFN 50th Percentile 7.97% 18.06% 3.97% 0.00%
database is $128mm, compared to $275mm for all funds 75th Percentile 5.20% 6.29% 3.32% 0.00%
and $213mm for funds with non-primary exposure to 90th Percentile -0.77% 0.22% 1.95% 0.00%
India. Individual fund sizes are even smaller.
• London is the primary base of operations for India All Hedge Funds
focused funds. Only one India focused fund is located in < 20mm 20 - 100 100 - 500 500mm+
the country itself. Total Funds 1619 1647 943 243
• The vast majority of India focused funds are equity 10th Percentile 24.31% 23.97% 24.19% 20.98%
oriented with a long bias. 25th Percentile 12.53% 12.72% 13.18% 12.20%
50th Percentile 3.47% 4.80% 5.66% 7.75%
• India fund launches peaked in 2007 and the count was
75th Percentile -1.86% -1.08% -0.08% -0.73%
high again in 2008. Hedge fund industry launches
90th Percentile -8.19% -8.39% -6.83% -7.87%
peaked in 2006.
Total Asset Levels Figure 5: Total asset levels in India focused hedge funds, in US$ billion from
India focused funds were among the fastest growing sub- Dec 2003 through Aug 2010. Source: HFN Hedge Fund Asset Flow Data2
$20 350%
sectors of the hedge fund industry pre-financial crisis. The
prevailing thought was that emerging markets were rapidly
becoming less reliant on major developed markets for growth
300%
$16
and India was a prime example. The financial crisis was a set-
back for emerging markets, but capital has flowed back to the 250%

group. Following are estimates for India focused funds:

$12
• At the end of August 2010, HFN estimated that total 200%

assets in hedge funds investing primarily in India’s

markets were $9.53 billion. 150%
• Asset levels peaked at the end of 2007 at an estimated
$8

$18.74 billion and fell to a low of $5.92 billion in Q1 100%

2009, a decline of 68%. Average India fund performance
during that time frame was -58.75%, meaning investor $4
50%
outflows accounted for additional asset declines.
• YTD through August, India fund assets increased 17%,
or $1.4 billion. Equal weighted per-formance of +6.50% $0 0%
Dec - 03 J un- 04 Dec - 04 J un- 05 Dec - 05 J un- 06 Dec - 06 J un- 07 Dec - 07 J un- 08 Dec - 08 J un- 09 Dec - 09 J un- 10
indicates that, depending on fund size and return, part of
the asset increase is due to net investor inflows. In d ia Asse t s HFN In d ia B S E S ENS EX

• Net investor inflows and new launches appear to have

lifted India fund AUM at a rate above the industry Figure 6: Correlation of monthly returns comparisons for specified periods and HFN Indices
average in 2010. Funds w/ India Exposure

HFN Emerging Markets

Correlation of Returns

HFN HF Aggregate
Since the end of 2007, global markets have shown much

S&P 1200 Global

higher levels of correlation than many anticipated possible.

Sensex Data
HFN Russia

Despite the underlying domestic circumstances being vastly HFN MENA

HFN China
HFN Brazil

HFN India

Correlation
different, emerging markets have exemplified this high level of from
1/2001 To
correlation. In Figure 6 the correlations of monthly returns are 12/2007
compared for the time periods before the financial crisis and HFN Brazil 1.00 0.51 0.41 0.63 0.36 0.23 0.72 0.62 0.57 0.63
during/post financial crisis and just the last twelve months. HFN Russia 1.00 0.26 0.52 0.44 0.05 0.85 0.64 0.34 0.44
The data set titled “Funds w/ India Exposure” refers to funds HFN India 1.00 0.64 0.35 0.32 0.53 0.55 0.75 0.35
which invest in, but are not solely focused on India. These Funds w/ India Exposure 1.00 0.59 0.27 0.80 0.81 0.75 0.63
funds often invest in Brazil, China and Russia as well. HFN China 1.00 0.09 0.53 0.64 0.35 0.43
HFN MENA 1.00 0.26 0.32 0.20 0.30
• During the first period, the correlation of monthly HFN Emerging Markets 1.00 0.83 0.60 0.64
returns for India focused funds to other emerging HFN HF Aggregate 1.00 0.59 0.65
markets was relatively low. India funds showed higher BSE SENSEX 1.00 0.51
Correlation from 1/2008 To 8/2010
correlations to broad hedge fund performance than to
HFN Brazil 1.00 0.85 0.79 0.93 0.87 0.85 0.92 0.94 0.77 0.82
Brazil, Russia or China focused funds.
HFN Russia 1.00 0.72 0.85 0.71 0.91 0.96 0.90 0.66 0.78
• Looking across the crisis period to the present, HFN India 1.00 0.90 0.84 0.79 0.85 0.85 0.96 0.80
correlations increased significantly. The HFN Emerging Funds w/ India Exposure 1.00 0.94 0.91 0.90 0.96 0.87 0.90
Market Index correlation to the HFN Aggregate rose to HFN China 1.00 0.78 0.83 0.84 0.82 0.79
nearly 0.97. HFN MENA 1.00 0.94 0.91 0.77 0.84
• When only the last twelve months are compared, it is HFN Emerging Markets 1.00 0.97 0.81 0.87
clear correlations have come down, but remain much HFN HF Aggregate 1.00 0.80 0.88
BSE SENSEX 1.00 0.81
higher than pre-crisis historical levels.
Correlation in Last Twelve Months
India focused funds missed a fair amount of the climb in the HFN Brazil 1.00 0.61 0.71 0.85 0.92 0.46 0.79 0.80 0.64 0.85
SENSEX, mostly in mid-2009. The differential of monthly HFN Russia 1.00 0.63 0.80 0.60 0.85 0.93 0.82 0.44 0.65
returns show the group tended to underperform SENSEX HFN India 1.00 0.88 0.66 0.64 0.83 0.87 0.87 0.76
market surges, which is understandable due to the long/short Funds w/ India Exposure 1.00 0.86 0.79 0.96 0.96 0.69 0.88
HFN China 1.00 0.49 0.77 0.79 0.53 0.85
nature of equity focused hedge funds, but also significantly HFN MENA 1.00 0.87 0.81 0.41 0.59
underperformed in a few down months. The second to last HFN Emerging Markets 1.00 0.95 0.64 0.81
page of the report has a table of relative performance to the HFN HF Aggregate 1.00 0.69 0.89
SENSEX in down months. BSE SENSEX 1.00 0.62

© 2010 Channel Capital Group Inc. FOR DETAILS ON INDIA FOCUSED FUNDS IN THIS REPORT, CONTACT HEDGEFUND.NET AT +1 212 230 2211
Past performance is no guarantee of future returns
HedgeFund.net | Regional Focus Report: India Focused Funds HFN

Comparison to other Emerging Markets Figure 7: Rolling 12month returns from Jan 01 – Aug 10
India focused funds have gone through periods of low and high 12 0 %

volatility which makes them unique among emerging market

10 0 %
fund groups. Russia focused funds appear to have consistently
high volatility (both upside and downside), while Brazil focused 80%

funds have consistently been the least volatile. India funds

were among the most volatile in their earliest incarnation and
60%

then during 2004-2008 were relatively consistent even when 40%

the SENSEX was more fluctuating more significantly. Post-

20%
2008 they have once again produced highly volatile returns.
0%
Since
Benchmark Aug YTD LTM Jan08 - 20%

HFN India Index 0.88% 6.34% 18.22% -29.75%

- 40%
India - EQ Only 0.96% 6.29% 16.77% -25.50%
Funds w/ India Exposure -0.28% 0.16% 9.03% -6.59% - 60%
BSE SENSEX 0.92% 3.25% 15.10% -11.11%
- 80%
HFN Brazil Index 0.48% 2.69% 15.15% 20.83%
J an- 01 M ar - 02 M ay -03 J ul- 04 S ep- 05 No v - 0 6 J an- 08 M ar - 09 M a y - 10
HFN China Index 0.57% -4.01% 7.15% -11.41%
HFN Russia Index -1.79% 3.74% 25.09% -34.36% R ussia Ind ia C hina B r azil
HFN Latin America Index 0.50% 3.17% 15.11% 16.37%
HFN Middle East/North Africa Index -0.56% 4.08% 6.42% -23.09% Figure 8: LTM cumulative return (Y-axis) to LTM standard deviation of monthly
HFN Emerging Markets Index -0.06% 4.32% 17.19% -9.38% returns (X-axis) for India focused funds and a variety of HFN indices
Emerging Markets - EQ Only 0.07% 2.35% 14.25% -8.12% 30%
HFN Asia Index -1.11% -0.49% 3.43% -10.43%
HFN Europe Index -0.50% 0.27% 4.34% -4.81%
HFN Global Index 0.73% 1.28% 5.02% -3.06% Russia
25%
HFN North America Index -0.56% 2.21% 8.38% -4.03%
HFN Australia Index 0.76% -2.09% 4.59% 14.55%
HFN Japan Index -4.32% -2.56% -5.73% -12.92% 20%
HFN Hedge Fund Aggregate Index 0.12% 1.89% 7.11% 2.52% India
S&P 1200 Global -4.15% -7.59% 3.68% -28.98% B S E S ENS EX
Lat in A m er ic a Em er ging M ar k et s
15%
B r az il

Going Forward
Due to the size of the population and the growth/development 10% India Ex posur e
potential, exposure to India is understandably desirable and U.S . Nor t h A m er ic a

India funds have performed well in 2010. However, relative to M ac r o HF A ggr egat e M iddle East / Nor t h
China
other country specific emerging market hedge funds groups 5%
Global
A sut r alia A f r ic a
over the last two years, all of which are predominantly EQ Eur ope
A sia S & P 1200 Global
focused with a long bias, India focused funds have done a poor
job at outperforming their country’s primary EQ benchmark 0%

during down months. This has been the leading cause for their 0% 5% 10% 15% 20%

long term underperformance of the SENSEX.

- 5%
J apan
Fund launches have drawn an above average amount of new
capital to the group, but the road appears to be bumpy. The
story from within India is similar to that pre-financial crisis; - 10%

increasing independence from external economies for

supporting rapid growth, but also a dependence on external
sources of capital to drive spending. The planned upcoming
Commonwealth Games in Delhi, and the troubles surrounding
the preparations, encapsulate the India story well; a desire for
growth constrained by its infrastructure. If India focused hedge
funds hope to continue to raise assets they must do a better
job at protecting investors from the inevitable pitfalls.

The following page has an illustration of the relative

underperformance of India focused funds to other
country specific emerging market funds and their
respective benchmarks during down months.

© 2010 Channel Capital Group Inc. FOR DETAILS ON INDIA FOCUSED FUNDS IN THIS REPORT, CONTACT HEDGEFUND.NET AT +1 212 230 2211
Past performance is no guarantee of future returns
HedgeFund.net | Regional Focus Report: India Focused Funds HFN

Figure 9: Relative performance of HFN country specific emerging market indices to their respective country specific benchmarks in down months, since January 2002, the inception
of the HFN India Index. HFN Index outperformance is in green, underperformance in red. Note: dates differ for each group as they are for each country’s down months.

China-
Shanghai
HFN India- HFN HFN Brazil- HFN Shanghai SE
India SENSEX Russia RTS Russia- Brazil BOVESPA China SE Comp
Date Index SENSEX Diff Date Index Index RTS Diff Date Index BOVESPA Diff Date Index Composite Diff
03/02 2.67% -2.61% 5.28% 11/04 -0.87% -5.38% 4.51% 01/02 -0.83% -6.31% 5.48% 01/02 1.47% -15.15% 16.62%
04/02 6.40% -3.78% 10.18% 12/04 -0.05% -2.21% 2.16% 03/02 2.36% -5.54% 7.90% 05/02 2.08% -9.12% 11.20%
05/02 -3.80% -6.36% 2.56% 03/05 -2.69% -6.61% 3.92% 04/02 1.65% -1.28% 2.93% 07/02 -4.75% -4.68% -0.07%
07/02 -2.99% -7.92% 4.93% 05/05 1.11% -0.36% 1.47% 05/02 -0.54% -1.71% 1.17% 09/02 -5.67% -5.10% -0.57%
09/02 -6.18% -5.97% -0.21% 10/05 -4.15% -9.63% 5.48% 06/02 -4.20% -13.39% 9.19% 10/02 0.75% -4.69% 5.44%
10/02 1.74% -1.41% 3.15% 03/06 1.92% -1.27% 3.19% 07/02 -3.57% -12.35% 8.78% 11/02 5.35% -4.86% 10.21%
01/03 -0.68% -3.76% 3.08% 05/06 -5.93% -11.83% 5.90% 09/02 -0.53% -16.94% 16.41% 12/02 0.28% -5.34% 5.62%
03/03 -7.26% -7.15% -0.11% 09/06 -0.93% -4.72% 3.79% 01/03 -0.10% -2.90% 2.80% 03/03 -2.54% -0.09% -2.45%
04/03 4.47% -2.92% 7.39% 01/07 0.24% -4.11% 4.35% 02/03 0.44% -6.03% 6.47% 06/03 4.58% -5.72% 10.30%
01/04 -4.84% -2.45% -2.39% 04/07 0.63% -1.06% 1.69% 06/03 1.74% -3.35% 5.09% 07/03 7.81% -0.62% 8.43%
02/04 -0.03% -0.49% 0.46% 05/07 -2.85% -7.05% 4.20% 01/04 0.83% -1.73% 2.56% 08/03 5.89% -3.71% 9.60%
03/04 1.13% -1.36% 2.49% 08/07 -2.98% -3.71% 0.73% 02/04 0.25% -0.44% 0.69% 09/03 2.33% -3.86% 6.19%
05/04 -13.04% -15.83% 2.79% 11/07 0.05% -0.13% 0.18% 04/04 -2.90% -11.45% 8.55% 10/03 7.78% -1.38% 9.16%
01/05 -1.35% -0.71% -0.64% 01/08 -6.63% -16.74% 10.11% 05/04 -0.61% -0.32% -0.29% 04/04 -7.01% -8.38% 1.37%
03/05 -1.23% -3.29% 2.06% 03/08 -2.34% -0.48% -1.86% 10/04 -0.38% -0.83% 0.45% 05/04 1.66% -2.49% 4.15%
04/05 0.00% -5.21% 5.21% 06/08 -2.61% -6.36% 3.75% 01/05 -0.23% -7.04% 6.81% 06/04 -1.21% -10.07% 8.86%
10/05 -8.24% -8.60% 0.36% 07/08 -9.91% -14.62% 4.71% 03/05 -2.07% -5.43% 3.36% 07/04 -0.20% -0.93% 0.73%
05/06 -9.22% -12.26% 3.04% 08/08 -10.62% -16.30% 5.68% 04/05 -0.94% -6.64% 5.70% 08/04 -1.50% -3.18% 1.68%
02/07 -4.16% -8.18% 4.02% 09/08 -20.93% -26.38% 5.45% 06/05 0.46% -0.62% 1.08% 10/04 -0.02% -5.45% 5.43%
08/07 -1.96% -1.49% -0.47% 10/08 -28.20% -36.18% 7.98% 10/05 -1.56% -4.40% 2.84% 12/04 0.01% -5.54% 5.55%
11/07 1.76% -2.39% 4.15% 11/08 -9.14% -14.90% 5.76% 03/06 -0.24% -1.70% 1.46% 01/05 0.84% -5.90% 6.74%
01/08 -11.95% -13.00% 1.05% 12/08 -7.03% -3.99% -3.04% 05/06 -5.18% -9.50% 4.32% 03/05 -2.46% -9.55% 7.09%
02/08 -3.04% -0.40% -2.64% 01/09 -8.32% -15.33% 7.01% 08/06 1.69% -2.28% 3.97% 04/05 -0.93% -1.87% 0.94%
03/08 -12.06% -11.00% -1.06% 06/09 -2.13% -9.25% 7.12% 02/07 2.27% -1.68% 3.95% 05/05 -0.78% -8.49% 7.71%
05/08 -6.83% -5.04% -1.79% 02/10 -0.63% -5.67% 5.04% 07/07 1.70% -0.38% 2.08% 09/05 2.73% -0.62% 3.35%
06/08 -12.39% -17.99% 5.60% 05/10 -6.64% -11.97% 5.33% 11/07 -2.70% -3.54% 0.84% 10/05 -5.19% -5.43% 0.24%
09/08 -14.18% -11.70% -2.48% 06/10 -2.85% -3.27% 0.42% 01/08 -3.55% -6.88% 3.33% 03/06 5.87% -0.06% 5.93%
10/08 -19.78% -23.89% 4.11% 08/10 -1.79% -3.56% 1.77% 03/08 -5.37% -3.97% -1.40% 07/06 -0.22% -3.56% 3.34%
11/08 -5.74% -7.10% 1.36% 06/08 -2.29% -10.43% 8.14% 06/07 2.91% -7.03% 9.94%
01/09 -4.12% -2.31% -1.81% 07/08 -2.37% -8.48% 6.11% 11/07 -6.37% -18.19% 11.82%
02/09 -5.06% -5.65% 0.59% 08/08 -4.68% -6.43% 1.75% 01/08 -9.93% -16.69% 6.76%
06/09 -1.45% -0.90% -0.55% 09/08 -10.95% -11.03% 0.08% 02/08 2.65% -0.80% 3.45%
08/09 1.81% -0.02% 1.83% 10/08 -11.37% -24.80% 13.43% 03/08 -6.56% -20.14% 13.58%
10/09 -2.48% -7.18% 4.70% 11/08 -0.32% -1.77% 1.45% 05/08 -0.79% -7.03% 6.24%
01/10 -1.64% -6.34% 4.70% 02/09 -0.90% -2.84% 1.94% 06/08 -6.78% -20.31% 13.53%
05/10 -5.27% -3.50% -1.77% 06/09 0.98% -3.26% 4.24% 08/08 -5.75% -13.63% 7.88%
01/10 -3.15% -4.65% 1.50% 09/08 -8.49% -4.32% -4.17%
04/10 0.48% -4.04% 4.52% 10/08 -11.69% -24.63% 12.94%
05/10 -4.42% -6.64% 2.22% 12/08 4.47% -2.69% 7.16%
06/10 1.24% -3.35% 4.59% 08/09 -3.27% -21.81% 18.54%
08/10 0.48% -4.82% 5.30% 01/10 -4.25% -8.78% 4.53%
04/10 -0.68% -7.67% 6.99%
05/10 -5.62% -9.70% 4.08%
06/10 -0.53% -7.48% 6.95%

© 2010 Channel Capital Group Inc. FOR DETAILS ON INDIA FOCUSED FUNDS IN THIS REPORT, CONTACT HEDGEFUND.NET AT +1 212 230 2211
Past performance is no guarantee of future returns
HedgeFund.net | Regional Focus Report: India Focused Funds HFN

Contributors

Peter Laurelli, CFA Minkyu Michael Cho

Vice President Analyst
plaurelli@hedgefund.net mcho@hedgefund.net
+1 212 230 2216 +1 212 230 2209

HFN Data Division Main Contact Line +1 212 230 2224

Joel M. Schwab, CFA Michael Cicero, CAIA Peter Laurelli, CFA John Ruszkowski, CAIA
Managing Director Vice President Vice President Associate
jschwab@channelcapital.net mikec@hedgefund.net plaurelli@hedgefund.net jr@hedgefund.net
+1 212 381 8065 +1 212 381 8068 +1 212 230 2216 +1 212 230 2217

*For details on fund components of the HFN Averages visit: www.hedgefund.net

Disclosure:

1 - Risk-free rate used to calculate the Sharpe Ratio is based on an average of the 3 Month US Treasury rate over the stated time period
2 – The HFN Asset Flow Report is available quarterly and covers asset flow data across more than 60 categories in which hedge funds invest. For
information about the report, please call 212.230.2211

Past performance is no guarantee of future returns

The HFN Averages performance becomes final 45 days after the end of the reporting month.
HFN Averages are based upon hedge fund performance as reported by hedge fund firms, their agents or other representatives. Performance has not been
independently verified by Channel Capital Group Inc. This document may not be reproduced or distributed except by authorized representatives of
Channel Capital Group Inc. This document does not constitute a solicitation to buy or sell or of an offer to buy or sell any security, and does not include a
recommendation of any security. Nothing herein this report shall constitute tax or investment advice. Reasonable care has been taken in compiling the
information contained herein, however such information is dependent on the accuracy of reporting hedge funds and their agents, and as such, Channel
Capital Group Inc. is not responsible for any errors or omissions. This document describes broad investment strategies and sectors, but does not contain a
complete description of the risks associated with them. The views contained herein represent opinion and are not intended to predict or depict
performance of any investment. This report is not directed at any particular individual or entity and should not be relied upon in making an investment
decision.

© 2010 Channel Capital Group Inc., All Rights Reserved

© 2010 Channel Capital Group Inc. FOR DETAILS ON INDIA FOCUSED FUNDS IN THIS REPORT, CONTACT HEDGEFUND.NET AT +1 212 230 2211
Past performance is no guarantee of future returns