EUREKAHEDGE FUNDS OF HEDGE FUNDS SURVEY The Eurekahedge Funds of Hedge Funds Survey is a new feature of The Eurekahedge

Report, highlighting where funds of hedge funds intend to invest in the coming six months. The results are complied through the use of a survey distributed to a representative global sample of 100 funds of hedge funds. Eurekahedge asked funds of hedge funds to indicate how they are planning to allocate capital to hedge funds across different regional and strategic mandates. The results of the survey shown in The Eurekahedge Report are limited to regional hedge fund investment mandates only this document goes into the results in greater detail. These detailed results will only ever be disseminated to survey participants and Eurekahedge subscribers who request them. Regional mandates As shown in Table 1, for the next 3 months funds of hedge funds have positive view overall on the hedge fund industry with 20% looking to increase their allocations to at least one of the underlying regions. 73% of funds of hedge funds intend to maintain their current allocations while 7% will be looking to decrease their allocations to at least one region. Amongst all regional mandates, Asia ex-Japan hedge funds are attracting the most interest with 36% of our survey participants looking to increase their allocations over the next 3 months. North American hedge funds are also attracting increasing interest from fund of funds managers while views on Europe and Japan are more balanced. Table 1: Survey results for funds of hedge funds regional allocations
Asia exJapan Increasing allocation Decreasing allocation Net Maintaining current allocations Total Responses
Source: Eurekahedge

Japan 16% 14% 1% 70% 76

Europe 12% 10% 2% 78% 83

Latin America 15% 1% 13% 84% 68

North America 19% 5% 14% 76% 83

Total 20% 7% 13% 73% 385

36% 4% 32% 60% 75

Figure 1: Percentage of funds of hedge funds increasing/decreasing regional allocations

40% 30% 20% 10% 0% Asia ex-Japan -10% -20% Japan Europe Latin America North America Total

Increasing allocation Source: Eurekahedge www.eurekahedge.com

Decreasing allocation

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Strategic mandates Table 2 shows the survey results by strategic mandates. For the next 3 months, funds of hedge funds have an overall positive view on the different strategies, with 25% looking to increase their allocations to at least one of the underlying regions. 63% of funds of funds intend to maintain their current allocations while 13% will be looking to decrease their allocations to at least one strategy. Event driven and CTA/managed futures appear to be the most popular strategies going forward and will be attracting more capital from 44% and 32% of funds of funds that have a mandate to allocate to these strategies. The outlook on long/short equity funds shows the greatest mix; with 37% of survey participants looking to increase allocations and 20% looking to decrease allocations. Distressed debt funds might be facing redemptions, as 23% of funds of funds indicate that they will be decreasing allocations. Table 2: Survey results for funds of hedge funds strategic allocations
Arbitrage Increasing allocation Decreasing allocation Net 22% 6% 16% CTA/ managed futures 32% 8% 24% 60% 87 Distressed debt 4% 23% -19% 73% 79 Event driven 44% 5% 40% 51% 81 Fixed income 26% 14% 13% 60% 80 Long/ short equities 37% 20% 17% 43% 86 Macro 21% 15% 6% 64% 80 Multistrategy 8% 12% -4% 80% 83 Relative value 23% 14% 9% 63% 79 Total 25% 13% 12% 63% 734

Maintaining current 72% allocations Total 79 Responses Source: Eurekahedge

Figure 2: Percentage of funds of hedge funds increasing/decreasing strategic allocations

50% 40% 30% 20% 10% 0% -10% -20% -30%
Increasing allocation Source: Eurekahedge Decreasing allocation

www.eurekahedge.com

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