Subject: FW: Prime Services' Monthly Hedge Fund Industry Update - February 2011
From: "Neil Callahan" <[email-masked]>
To: "Firmwide" <[email-masked]>
Date: Thu, 17 Feb 2011 06:20:00 +0530
List-Id: <all.rosemontseneca.com>

FYI

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Neil Callahan

Rosemont Seneca

401 Greenwich Street, Suite 400 | New York NY 10013 | 212-933-9965 |
212-796-4037

1010 Wisconsin Avenue, Suite 705 | Washington DC 20007 | 202-333-1880

917-945-9516 (mobile) 

866-749-8879  (fax) 

From: Jacknow, Bret [mailto:[email-masked]] 
Sent: Thursday, February 17, 2011 12:01 AM
To: Jacknow, Bret
Subject: Prime Services' Monthly Hedge Fund Industry Update - February 2011

 

Attached please find the PDF which complements the Monthly Hedge Fund
Industry Update call held today. 

<<Credit Suisse February 2011 Call.pdf>> 

The Investor Perspective 

.         Sentiment & Flows: Strong momentum from last year carried over in
January, as institutional investors continue to look for new sources of
uncorrelated performance in 2011. Investors are notably broadening their
range of funds & strategies for consideration.

.         Performance: Hedge funds began the year on a positive note, with
the Dow Jones Credit Suisse Hedge Fund Index posting a gain of 0.69%. There
was some amount of dispersion in returns amongst strategies, even as 9 out
of 13 strategies recorded positive performance for the month. 

.         Strategy Appetite: Event Driven and Global Macro continue to be of
high interest across all three geographic regions. However, we are also
seeing more diversity, in preference for strategies such as emerging markets
and commodities. 

The Risk Perspective 

.         Gross Leverage: The overall gross market exposure of the book
increased noticeably to 2.65x (from 2.52x). All major strategies, except
Relative Value, increased leverage in January with biggest increases seen in
Tactical Trading, Event Driven and Long/Short funds.

.         Equity Long/Short Bias: Long/Short Bias fell for the first time
since August 2010 to 57% (from 62%) as managers responded to market rotation
and reduced net exposure.

.         Regional Long/Short Bias: Long/Short bias in January was down in
North America and Emerging Markets, partially offset by increases in Europe
and Asia Developed markets.

.         Sector Long/Short Bias: Sectors that drove the overall decrease in
our book bias included Index/ETFs (increased hedging), Energy and Telecom. 

Call Replay Details: 
United Kingdom 0800 917 2646 
United States 1 800 642 1687 
Switzerland 0800 563 744 
Singapore 800 101 1464 
Hong Kong 800 930 800 
Australia 1800 002 633 
Replay available through March 16th, 2011 
Replay ID 38924674 

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