Hedge Fund Spotlight

Home , Assets under management, D1 Capital Partners, Point72 Asset Management, Viking Global Investors

VOLUME 10, ISSUE 5 ■ JUNE 2018

HEDGE FUND SPOTLIGHT

IN THIS ISSUE THE BIGGEST HEDGE FUND LAUNCHES OF 2018

This feature focuses on the biggest hedge fund launches FEATURE 2 in the year so far, listing these funds' investment The Biggest Hedge Fund preferences and plans as well as their competition in the market and possible investors. Launches of 2018

INDUSTRY NEWS 6 Find out more on page 2

THE FACTS ■ Performance 8 Benchmarks ■ Hedge Funds in 9 Chicago ■ Hedge Funds in 10 HEDGE FUNDS IN CHICAGO Europe ■ Fund Searches and 13 In this factsheet we use the data available on Preqin's Mandates online platform to reveal the key statistics surrounding hedge fund activity in Chicago, including the sizes and types of investors active in the industry as well as fund CONFERENCES 14 launches and liquidations over the past 10 years.

Find out more on page 9

All data in this newsletter JUST RELEASED: PREQIN MARKETS can be downloaded to IN FOCUS: ALTERNATIVE ASSETS IN EUROPE Excel for free June 2018 PREQIN MARKETS IN FOCUS: ALTERNATIVE ASSETS IN EUROPE

Download Your Copy Sign up to Spotlight, our free monthly newsletter, providing insights into performance, investors, deals and fundraising, powered by Preqin data:

Alt Credit Intelligence European and US Fund Services Awards: Best Data and Information SIGN UP Provider | Africa Global Funds Awards 2016: Best Research and Data Provider | The Queen’s Award for Enterprise: International Trade | HedgeWeek Global Awards: Best Global Hedge Fund Research Provider | CAIA Corporate Recognition Award

www.preqin.com/contact [email protected] THE BIGGEST HEDGE FUND LAUNCHES OF 2018 THE BIGGEST HEDGE FUND LAUNCHES OF 2018

In this special feature we examine what we know about hedge fund launches in 2018 so far and, using data taken from Preqin’s online platform, examine how these funds stack up to their competitors as well as where new assets could come from.

f the 183 hedge funds that have launched so far in 2018, three have managed to attract a combined $14bn. The firms responsible Ofor these funds are ExodusPoint Capital Management, D1 Capital and Kirkoswald Capital Partners. Point72 Asset Management, run by industry behemoth Steve Cohen, also opened up to investor capital in early 2018, and manages an estimated $12bn ($9bn of these assets are continued from its time as a family office).

Fig. 1: Hedge Fund Managers by Year Established, Fig. 2: Hedge Fund Launches and Liquidations by Year of 2000 - 2018 YTD (As at June 2018) Inception/Liquidation, 2000 - 2018 YTD (As at June 2018) 600 2,000 516 506 1,500 500 487 460 446 425 1,000 408 392 400 337 354 337 500 299 300 277 0 242 253 246 Liquidations 200 192 -500 154 No. of Fund Launches/ -1,000 No. of Fund Managers 100 38 -1,500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD

2018YTD Year of Inception/Liquidation No. of Fund Launches No. of Fund Liquidations Year Established Source: Preqin Source: Preqin

Fig. 3: Hedge Fund Launches by Top-Level Strategy and Year of Inception, 2013 - 2018 YTD (As at June 2018) PREQIN’S ONLINE PLATFORM 1,800 Niche Strategies 1,600 Preqin's online platform incorporates all of our hedge Multi-Strategy fund data, intelligence and functionality. Updated on a 1,400 daily basis by teams of skilled research analysts based 1,200 Managed Futures/CTA around the globe, the platform is a vital source of data and 1,000 Relative Value Strategies information for fund managers, investors, service providers and other professionals in the industry. 800 Credit Strategies

600 Event Driven Strategies Search for detailed profiles on over 9,500 hedge fund

No. of Fund Launches managers around the world, view data on over 16,000 400 Macro Strategies hedge funds that are currently raising capital or access 200 industry benchmarks by strategy, geographic focus, fund Equity Strategies 0 size and more. 2013 2014 2015 2016 2017 2018 YTD For more information, please visit:

Year of Inception www.preqin.com/hedgefunds Source: Preqin

2 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com THE BIGGEST HEDGE FUND LAUNCHES OF 2018

EXODUSPOINT CAPITAL MANAGEMENT

FIRM ABOUT: New York-based ExodusPoint Capital Management was established in 2017 by former Millennium ExodusPoint Management executives Michael Gelband and Hyung Soo Lee. Capital Management

THE FUND: The firm raised $8bn for its debut investment vehicleExodusPoint Partners Master Fund, which is reportedly the largest hedge fund launch of all time. The multi-strategy hedge fund trades FUND equities, options, derivatives, debt instruments and commodities, but will also encompass other types of ExodusPoint strategies, including credit, equity, event driven and macro. Partners Master Fund

THE COMPETITION POSSIBLE INVESTORS STRATEGY Multi-Strategy ■■ Fourteen other multi-strategy hedge funds ■■ There are 152 investors currently searching for have launched so far in 2018. multi-strategy funds in 2018. ■■ There are six other multi-strategy-focused ■■ Among these is UK-based pension fund RHM hedge funds with $8bn or more in AUM, of Pension Scheme, which is looking for new funds LOCATION which four are open to investment. over 2018. The pension fund invests directly and New York, US ■■ Multi-strategy funds saw $0.5bn in net prefers multi-strategy vehicles. outflows in Q1 2018, and 45% of multi- ■■ Preqin tracks 71 investors that currently invest in strategy funds saw inflows over this period. Gelband’s former firm, Millennium Management, KEY PERSON(S) ■■ Standard Life Global Absolute Return 16 of which have expressed interest in spin-off Michael Gelband Strategies Fund is the largest active multi- firms. Hyung Soo Lee strategy fund open to investment with £21bn in AUM.

D1 CAPITAL

FIRM ABOUT: D1 Capital was founded in 2017 by former Viking Global Investors CIO, Daniel Sundheim, and is D1 Capital headquartered in New York.

THE FUND: In July 2018, D1 Capital will launch D1 Capital Partners, a long/short equity hedge fund with $4bn in AUM. The vehicle will take 20-30 long positions with an equivalent or greater amount of short FUND positions, and will also invest in private equity through a side pocket. Investors can choose between D1 Capital Partners different fee options, with a management fee of 1.00-1.75% and a performance fee of 20.00-25.00%.

THE COMPETITION POSSIBLE INVESTORS

STRATEGY ■■ Fifty-one other long/short-equity focused ■■ There are 263 investors currently searching for Long/Short Equity funds have launched so far in 2018. long/short equity funds in 2018. ■■ There are 20 other long/short equity funds ■■ Among these is CIR Group, which will look to with $4bn or more in AUM, of which 17 are invest in long/short equity and macro funds in open to investment. 2018 with a preference for US-based managers. LOCATION ■■ Equity funds saw $7.6bn in net outflows in Q1 ■■ Preqin tracks 98 investors currently investing in New York, US 2018; 42% of equity funds saw inflows over Sundheim’s former firm,Viking Global Investors, this period. 21 of which have expressed an interest in ■■ Old Mutual Global Equity Absolute Return investing in spin-off firms. Fund is the largest active long/short equity KEY PERSON(S) fund open to investment with $15bn in Daniel Sundheim AUM, with Switzerland-based EFG Asset Management among its investors.

3 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com THE BIGGEST HEDGE FUND LAUNCHES OF 2018

KIRKOSWALD CAPITAL PARTNERS

FIRM Kirkoswald ABOUT: Formerly known as Abbeville Partners, Kirkoswald Capital Partners is a global macro hedge fund Capital Partners manager based in London. In 2018, Greg Coffey – the so-called “Wizard of Oz” – joined the Abbeville team with seed capital from Moore Capital Management’s founder, Louis Bacon, and rebranded the firm to Kirkoswald Capital Partners.

FUND THE FUND: In May 2018, the firm launchedKirkoswald Global Macro Master Fund, a $2bn global macro Kirkoswald Global hedge fund with an emerging markets bias and a discretionary approach. The fund was reportedly backed Macro Master Fund by Coffey’s former Moore Capital Management boss, Louis Bacon.

THE COMPETITION POSSIBLE INVESTORS

STRATEGY ■■ Twenty-four other macro-focused hedge ■■ There are 161 investors currently searching for Macro funds have launched so far in 2018. macro-focused funds in 2018. ■■ There are 30 other macro-focused hedge ■■ Church Commissioners for England is currently funds with $2bn or more in AUM, of which 21 assessing macro strategies alongside quant and are open to investment. long/short equity for potential investment in LOCATION ■■ Macro funds saw $1.3bn in net outflows 2018. London, UK in Q1 2018, and 48% of macro funds saw ■■ Preqin tracks 57 investors currently investing in inflows over this period. Coffey’s former firm, Moore Capital Management. ■■ Eaton Vance Global Macro Absolute Return Seventeen of these investors have expressed an Advantage Fund, a ’40 Act fund which invests interest in investing in spin-off firms. in both developed and emerging markets, KEY PERSON(S) saw fresh investment from Pennsylvania Greg Coffey State Employees’ Retirement System in Q1 2018.

POINT72 ASSET MANAGEMENT

FIRM Point72 Asset ABOUT: Industry veteran and former SAC Capital Advisors founder, Steve Cohen, created Point72 Asset Management Management in 2014 as a family office. Following a two-year ban, the firm opened up to external capital in 2018, and currently manages $3bn in AUM. FUNDS Cubist Core Investments, THE FUND: In January 2018, the firm launched seven hedge funds which, between them, employ three Cubist Short Horizon core strategies: long/short equity, macro and multi-strategy. Each fund has a 2.75% management fee Investments I & II, and a performance fee of 10.00-30.00%. Point72 Associates I & II, Point72 Domestic Investments, Point72 Global Macro THE COMPETITION POSSIBLE INVESTORS Investments ■■ Eighty-two other long/short equity, macro ■■ There are 272 investors currently searching for long/short equity, macro and multi-strategy STRATEGIES and multi-strategy funds have launched so Long/Short Equity, far in 2018. funds in 2018. Macro, Multi-Strategy ■■ Luxor Capital Partners is a long/short equity ■■ New York Presbyterian Hospital will target event fund with $3bn in AUM targeting investments driven, long/short equity, multi-strategy and LOCATION globally. The fund’s investors include many relative value arbitrage funds in 2018, focusing Connecticut, US pension funds, including New York City Police on North America and Europe. Pension Fund. KEY PERSON(S) Steve Cohen

4 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com THE FACTS REASONS TO CONTRIBUTE DATA BE SEEN by thousands of investors and decision-makers around the world ENSURE that the data we hold for your firm and funds is correct GENERATE incoming leads from industry professionals seeing your profile CONTRIBUTE to industry benchmarks and help further research into this area

Contributing data is free and simple. For more information, please visit: www.preqin.com/sharedata 5 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com INDUSTRY NEWS

INDUSTRY NEWS

Following another positive month of returns, we take a closer look at event driven strategies funds that beat the market in May 2018, as well as investor searches initiated in the second quarter of the year.  EVENT DRIVEN FUNDS POST GAINS CHART OF THE MONTH IN MAY 2018

Asset Flows: Europe- vs. North America-Based Hedge Funds, Q1 2017 - Q4 2017 Event driven strategies outperformed all 25 other top-level strategies for the second 20 18.6 consecutive month, with gains of 1.61% 14.4 in May. Among these funds is Numen 15 11.1 Credit Opportunities Master Fund, which 9.4 10 9.0 generated the highest individual return €bn) Europe (+14.71%) of the month. Managed by 5 London-based Numen Capital, the special 0 situations-focused hedge fund was North America launched in November 2008, and primarily -5 focuses on opportunities in Europe. Net Asset Flows ( -10 -8.0 -7.5

Another fund that generated strong -15 returns in May is Accendo Capital, a €74mn -15.3 -20 fund focused on investments in small- Q1 2017 Q2 2017 Q3 2017 Q4 2017 and mid-sized publicly listed companies Source: Preqin Markets in Focus: Alternative Assets in Europe in Northern Europe that are driving or benefitting from technological innovation, As shown in the chart above, North America-based hedge funds saw outflows which returned 8.41%. amounting to €23bn in H2 2017, almost wiping out the positive flows of H1. By contrast, Europe-based hedge funds saw net inflows of €24bn across the whole of Black Crane Asia Opportunities Fund, 2017. which is managed by Hong Kong-based Black Crane Capital, posted gains of 7.93% The positive inflows in Europe in 2017 are translating into a more active 2018 when in May. The vehicle looks to take a mixture it comes to new European products hitting the market, as it appears that managers of long and short positions on investment in Europe are anticipating more opportunities. As seen in Preqin's November 2017 opportunities across Asia, with a time survey of hedge fund managers, 39% of Europe-based managers reported they had horizon of 6-24 months. a new launch planned for 2018; conversely, just 23% of North America-based hedge fund managers reported the same.

Even though managers and investors alike in Europe are facing challenges, the outlook is positive: both more funds are expected to launch and more capital is EUROPE-BASED INVESTOR SEARCHES expected to flow into hedge funds from Europe-based investors and funds. ISSUED IN 2018

For more information, please see our recently released Preqin Markets in Focus: Systematic Absolute Return, a Switzerland- Alternative Assets in Europe report. based fund of hedge funds manager, is planning to invest in 20-25 hedge funds in the next 12 months across a globally Valida Pension Management expects to diversified set of strategies. invest in three hedge funds in the next 12 SHARE YOUR NEWS months using new managers it has not Germany-based asset manager KONTOR previously worked with. The Austria-based Do you have any news you would like to share with the readers of Spotlight? STÖWER Asset Management will target corporate pension fund will focus on macro single-manager vehicles focused on special strategies and managed futures/CTAs with Send your updates to situations and macro strategies in Europe, a global reach, typically investing €50- [email protected] and we will and will use a mixture of new and existing 100mn per hedge fund. endeavour to publish them in the next issue. managers in its portfolio.

6 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com PREQIN GLOBAL DATA COVERAGE

FUNDS OPEN TO INVESTORS FUNDS WITH FIRMS FUNDS DEALS & EXITS ALTERNATIVES INVESTMENT MONITORED PERFORMANCE COVERAGE 33,145 60,782 22,510 16,649 28,469 343,345

PRIVATE NATURAL HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT EQUITY* RESOURCES 7,284 5,497 6,549 3,462 3,351 3,411 INVESTOR Active Active Active Active Active Active COVERAGE Private Equity Hedge Fund Real Estate Infrastructure Private Debt Natural Resources LPs Investors LPs LPs Investors Investors

FUND 20,841 26,539 7,343 1,343 2,648 2,068 COVERAGE Private Equity Hedge PE Real Estate Infrastructure Private Debt Natural Resources Funds Funds Funds Funds Funds Funds

FIRM 9,651 5,044 563 1,666 1,072 15,149 Hedge Fund PE Real Estate Infrastructure Private Debt Natural Resources COVERAGE Private Equity Firms Firms Firms Firms Firms Firms

PERFORMANCE 6,170 18,678 1,873 276 890 582 COVERAGE Private Equity Hedge PE Real Infrastructure Private Debt Natural Resources Funds Funds Estate Funds Funds Funds Funds

FUNDRAISING 2,901 17,516 1,274 183 368 268 COVERAGE Private Equity Hedge PE Real Infrastructure Private Debt Natural Resources Funds Funds Estate Funds Funds Funds Funds

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE PRIVATE DEBT DEALS & EXITS 161,642 COVERAGE 89,018 Venture Capital Deals 55,947 28,224 8,514 Buyout Deals and Exits Real Estate Deals Infrastructure Deals Private Debt Deals and Exits

Alternatives Investment Consultants Funds Terms Coverage: Analysis Best Contacts: Carefully Selected from Coverage: Based on Data for Around our Database of over 581 18,161 463,226 Consultants Tracked Funds Contacts + PLUS THE PREQIN DIFFERENCE Comprehensive coverage of: + Over 390 research, support and development staff + Placement Agents + Dry Powder + Global presence - New York, London, Singapore, + Fund Administrators + Compensation San Francisco, Hong Kong, Manila and Guangzhou + Law Firms + Plus much more... + Depth and quality of data from direct contact methods + Debt Providers + Unlimited data downloads + The most trusted name in alternative assets

*Private equity includes buyout, growth, venture capital, turnaround, private equity fund of funds, private equity secondaries, direct secondaries, balanced, hybrid, hybrid fund of funds, PIPE, co-investment and co-investment multi- manager funds. 2015 Annual CAIA Corporate Recognition Award Winner As at 1st June 2018 THE FACTS PERFORMANCE BENCHMARKS SINGLE-MANAGER HEDGE FUNDS May-18 Apr-18 2018 YTD 12 Months 12M Trend ■■ The Preqin All-Strategies Hedge Fund Hedge Funds 0.49 0.70 1.43 8.12 benchmark generated 0.49% in May, HF - Event Driven Strategies 1.61 0.47 2.25 7.72 the benchmark’s second consecutive HF - Equity Strategies 0.81 0.76 1.63 10.39 month of positive returns. HF - Relative Value 0.20 0.59 1.22 3.83 HF - Macro Strategies 0.04 0.39 0.83 4.59 ■■ Event driven strategies outperformed HF - Credit Strategies -0.18 0.35 1.61 5.10 all other top-level strategies for the HF - Multi-Strategy -0.56 0.81 0.80 6.92 second consecutive month with gains Activist 1.34 0.99 2.01 8.82 Discretionary 1.12 0.70 2.23 9.13 of 1.61% in May, bringing the year-to- Volatility 0.22 0.65 0.39 5.80 date return of the strategy to 2.25%. Systematic -0.41 0.36 0.20 4.99 HF - North America 1.92 0.62 2.88 8.84 ■■ Credit strategies (-0.18%) and multi- HF - Europe 1.07 1.56 2.12 5.39 strategy vehicles (-0.56%) were the HF - Developed Markets 0.86 0.38 1.75 6.71 only top-level strategies that suffered HF - Asia-Pacific 0.06 -0.02 -0.10 10.48 losses in May. HF - Emerging Markets -1.71 0.20 0.21 8.26 HF - GBP 1.17 1.13 1.68 4.58 ■■ Hedge funds focused on North HF - EUR 1.04 0.65 1.13 3.02 America (+1.92%) performed HF - USD 0.76 0.48 1.56 8.49 particularly well, outperforming HF - JPY -1.22 0.83 -1.88 6.04 HF - BRL -2.43 1.24 2.44 12.26 Europe-focused funds (+1.07%), HF - Large* 0.78 0.61 2.26 6.88 reversing the April return and HF - Small* 0.46 0.38 1.91 8.67 achieving the benchmark’s best result HF - Emerging* 0.39 0.73 0.86 7.94 since November 2016 (+2.58%). HF - Medium* 0.13 0.83 2.10 7.96

Source: Preqin

MULTI-MANAGER HEDGE FUNDS May-18 Apr-18 2018 YTD 12 Months 12M Trend PREQIN’S HEDGE FUND DATA

Funds of Hedge Funds 1.03 0.40 1.45 4.94 Preqin’s online platform is the FOHF - Equity Strategies 1.50 0.54 1.89 7.35 leading source of intelligence on the FOHF - Multi-Strategy 0.70 0.35 1.17 4.03 hedge fund industry, and contains FOHF - USD 1.77 0.25 2.58 6.69 performance information for over FOHF - EUR 1.08 0.22 0.89 2.78 16,000 hedge funds across all leading Funds of CTAs -1.94 0.57 -2.68 -2.86 strategies and geographies.

Source: Preqin For more information, or to arrange a demonstration, please visit: LIQUID ALTERNATIVES May-18 Apr-18 2018 YTD 12 Months 12M Trend

Alternative Mutual Funds 1.15 0.43 0.91 5.10 www.preqin.com/hedgefunds UCITS -0.52 0.37 -0.62 2.12 UCITS - Relative Value 0.14 -0.10 0.02 0.75 Please note, all performance information includes preliminary data for May 2018 based on net returns UCITS - Equity Strategies -0.22 0.67 0.12 5.10 reported to Preqin in early June 2018. Although UCITS - Macro Strategies -1.90 0.87 -1.22 -0.22 stated trends and comparisons are not expected to UCITS - EUR -0.42 0.49 -0.76 1.07 alter significantly, final benchmark values are subject to change. UCITS - USD -0.57 0.10 -0.04 4.73

Source: Preqin *Preqin fund size classifications: Emerging (less than $100mn); Small ($100-499mn); Medium ($500- 999mn); Large ($1bn plus). CTAS May-18 Apr-18 2018 YTD 12 Months 12M Trend

CTAs -0.64 0.59 -2.80 -0.05 Discretionary 1.06 1.15 0.00 1.01 Systematic -1.04 0.41 -3.29 -0.08 CTA - USD -0.86 0.59 -2.86 0.04 CTA - EUR -1.41 0.03 -5.43 -0.97

Source: Preqin

8 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com THE FACTS HEDGE FUNDS IN CHICAGO

We provide a snapshot view of the hedge fund industry in Chicago, looking at investors and fund managers based in the city as well as fund launches and liquidations over the past 10 years.

Fig. 1: Chicago-Based Investors in Hedge Funds by Investor Type Fig. 2: Active Chicago-Based Hedge Funds by Top-Level Strategy

Foundation Equity Strategies 7% 4% Fund of Hedge Funds 4% 7% 23% 4% Manager Managed Futures/CTA 5% Endowment Plan 33% 9% Multi-Strategy

Private Sector Pension 12% Relative Value Strategies Fund 9% Public Pension Fund Credit Strategies 17% Wealth Manager Event Driven Strategies 13% 14% Family Office Macro Strategies 15% 25% Niche Strategies Other

Source: Preqin Source: Preqin

Fig. 3: Assets under Management: Chicago- vs. All Other Illinois- Fig. 4: Chicago-Based Hedge Fund Launches and Liquidations by Based Hedge Fund Managers Year of Inception/Liquidation, 2008 - 2018 YTD (As at June 2018)

100% 2% 60 55 6% 48 90% 16% 50 9% 39 41 3% $10bn or More 40 34 80% 30 32 9% 30 25 16% 24 70% $1-9.9bn 12% 20 15 60% 9% 10 2 $500-999mn 50% 18% No. of Fund 0 1 2 $250-499mn -10 3 4 4 5 4 40% Launches/Liquidations 9 -20 $100-249mn 20 30% 56% -30 20% 43% Less than $100mn 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Proportion of Hedge Fund Managers 10% 2018YTD 0% Year of Inception/Liquidation Chicago-Based Hedge All Other Illinois-Based Fund Managers Hedge Fund Managers No. of Fund Launches No. of Fund Liquidations

Source: Preqin Source: Preqin

Fig. 5: Largest Chicago-Based Hedge Fund Managers by Total Fig. 6: Largest Chicago-Based Institutional Investors by Current Assets under Management Allocation to Hedge Funds (As at May 2018) Year Assets under Current Allocation to Manager Investor Type Established Management Hedge Funds ($bn) $27.1bn as at Boeing Company Pension Private Sector Citadel Advisors 1990 6.4 31 December 2017 Fund Pension Fund $10.8bn as at University of Chicago Endowment Balyasny Asset Management 2001 2.5 31 March 2018 Endowment Plan $8.6bn as at Exelon Corporation Pension Private Sector Driehaus Capital Management 1982 2.2 30 April 2018 Fund Pension Fund $6.8bn as at Continental Casualty Insurance Chicago Equity Partners, LLC 1989 1.5 31 December 2017 Company Company $5.5bn as at John D. and Catherine T. O'Connor 2000 Foundation 1.2 1 December 2017 MacArthur Foundation

Source: Preqin Source: Preqin

9 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com THE FACTS HEDGE FUNDS IN EUROPE

Using data from Preqin Markets in Focus: Alternative Assets in Europe, we detail hedge fund activity in the region by strategy, structure, fund type and more. Fig. 1: Europe-Based Hedge Fund Launches and Liquidations, 2007 - 2018 YTD (As at March 2018) Fig. 2: Europe-Based Hedge Funds by Top-Level Strategy

400 357 332 327 338 321 315 300 290 273 Equity Strategies 237 1% 215 10% 200 179 Macro Strategies No. of 100 Launches 33% Event Driven 21 14% Strategies 0 No. of 36 Credit Strategies -100 Liquidations 137 -200 Relative alue 190 8% Strategies 244 -300 273 280 300

No. of Fund Launches/Liquidations Managed Futures/CTA -400 12% 14% Multi-Strategy

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8% Niche Strategies 2018YTD Year of Inception/Liquidation Source: Preqin Markets in Focus: Alternative Assets in Europe Source: Preqin Markets in Focus: Alternative Assets in Europe

Fig. 3: Europe-Based Hedge Funds by Structure Fig. 4: Europe-Based Investors Active in Hedge Funds by Type

Private Sector Pension Fund

1% 5% 6% Fund of HF Manager 4% 22% Commingled Fund 5% Wealth Manager

Family Office UCITS 7% 31% Asset Manager Managed Account 8% Public Pension Fund Alternative Mutual 17% 63% Foundation Fund 9% Insurance Company 10% 11% Bank/Investment Bank

Other

Source: Preqin Markets in Focus: Alternative Assets in Europe Source: Preqin Markets in Focus: Alternative Assets in Europe

Fig. 5: Quarterly Europe-Based Hedge Fund Asset Flows, Fig. 6: Performance of Europe-Focused Hedge Funds vs. All Q1 2015 - Q1 2018 Hedge Funds and Public Market Indices

25 22.9 8% 6.33% 20 6% 5.16% 5.08% 4.44% 4.27% 4.75% 14.4 15 4% 2.21% Europe-Focused 11.1 1.89% 1.19% 1.94% 8.7 9.4 2% 1.38% Hedge Funds 10 7.5 0.82% 5.3 0% 5 -0.14% -0.21% EURO STOXX 50 -2% 0 -1.69% Index Net Return -2.53% -4% -3.12% -5 -4.06% -3.63% -6% -3.98% FTSE 100 Index -10 -8.0 -8.0 Quarterly Asset Flows (€bn) -8.5 -9.9 -8% -8.21% -15 -10% -15.0 -15.3 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22017 Q32017 Q42017 Q12018 3-Year 5-Year 2015 2016 2017 2018 Annualized Annualized 12 Months Source: Preqin Markets in Focus: Alternative Assets in Europe Source: Preqin Markets in Focus: Alternative Assets in Europe

10 Hedge Fund Spotlight | June 2018 © Preqin Ltd. 2018 / www.preqin.com HOW PREQIN CAN HELP YOU FUNDRAISE IN 2018

Although there are more institutional investors than ever currently investing in hedge funds – over 5,250 globally – fundraising in 2018 is undoubtedly challenging. Inflows were seen in 2017, with hedge funds netting $50bn in fresh capital, yet investors have remained cautious when making new commitments to the asset class over the course of 2018: just as many (27%) investors plan to put less money into hedge funds over the year as those that plan to put more.

However, there are opportunities to grow your fund over the course of 2018 – with industry-leading data and tools, Preqin will help you find those investors looking for new hedge funds today. To find out how Preqin can help you fundraise in 2018, please register here: www.preqin.com/demo

PREQIN IS HELPING RAISE CAPITAL FOR HEDGE FUNDS TODAY

5 0 4 8 1 4 1 6 6 4 8 8 8 5 9 6 6 1 6 3 1 5 5 4 6 6 3 5 6 4 7 8 5 0 2 0 4 7 5 8 3 1 7 5 6 5 0 7 4 7 2 2 4 3 3 0 8 9 7 4 4 1 4 5 9 5 3 9 5 0 4 5 0 5 7 6 9 3 6 5 4 1 8 7 2 7 2 1 1 8 1 7 0 8 6 8 4 0 9 4 2 6 4 6 6 3 0 2 4 8 6 8 1 0 1 6 4 9 8 4

6,500 7 3x investment professionals in out of the top From Q1 to Q3 2017 Preqin subscribers raised 3x more hedge fund capital than non-subscribers. 90+ countries use Preqin’s data. 10 hedge funds that saw the largest inflows in 2017 rely on Preqin data.

HOW PREQIN HELPS TO RAISE CAPITAL FOR HEDGE FUNDS

We have With researchers on the ground, Preqin is the Our fully searchable database allows you to first to find out the latest hedge fund searches target those investors interested in your fund 250+ among the and to find contact details for more than multilingual research analysts based in the US, London, Hong Kong, Singapore and China. 5,250+ 12,000 institutions worldwide. key decision makers at these institutions. Each month our team has thousands of conversations with investors to find out more about their alternative investments. HOW PREQIN CAN HELP YOU FUNDRAISE IN 2018

PREQIN CAN HELP RAISE CAPITAL FOR YOUR HEDGE FUNDS IN 2018

988 989 990 991 992

Investors have indicated they are looking for The average hedge fund investor looking to With over up to make new investments in the next 12 months plans to invest between 5,250 990 investors profiled on the Preqin platform, we new hedge funds in the $95mn can help pinpoint those investors that are next 12 months. and looking for you. $121mn

TAILOR YOUR PITCH USING PREQIN DATA

Forward-looking data Strategy, fund type and AUM and track record Full contact details for key Fund-level investments on future plans and full geographic preferences for requirements of investors decision makers, including on a named basis to see investment history of each each institution. in hedge funds. the best method to who they have invested institution. approach the investor. with and how that fund is performing.

Preqin’s hedge fund data has helped thousands of hedge fund professionals raise capital, identify investment opportunities, develop new business and form new partnerships. Constantly updated by a team of dedicated analysts, this comprehensive resource provides the most up-to-date information on all areas of hedge funds.

www.preqin.com/hedgefunds THE FACTS FUND SEARCHES AND MANDATES We take a look at the hedge fund searches issued by investors in May 2018 on Preqin's online platform, breaking them down by investor location and type, and also provide sample fund searches.

Fig. 1: Hedge Fund Searches Issued in May 2018 by Investor Location Fig. 2: Hedge Fund Searches Issued in May 2018 by Investor Type

Fund of Hedge Funds Manager 4% 10% 1% Family Office 3% 4% 6% North America 4% Wealth Manager

Europe 8% Endowment Plan 48% Asia-Pacific Bank/Investment Bank

Rest of World 10% Public Pension Fund 36% 66%

Asset Manager

Other

Source: Preqin Source: Preqin

Fig. 3: Hedge Fund Searches Issued in May 2018 by Strategy 30%

25% 24% DATA SOURCE:

20% 16% 16% Subscribers to Preqin's online platform can click here to 15% 14% view detailed profiles of 367 institutional investors in hedge 10% 10% 9% funds actively searching for new investments. 7% 7% 7% 5% 5% Preqin tracks the future investment plans of investors

Proportion of Fund Searches 0% in hedge funds, allowing subscribers to source investors actively seeking to invest capital in new hedge fund investments. Macro Distressed Lending Neutral Not yet a subscriber? For more information, or to arrange Event Driven Fixed Income Fixed Asset-Backed Equity Market Equity Multi-Strategy a demonstration, please visit: Cryptocurrency Long/Short Credit Long/Short Equity Long/Short www.preqin.com/hedge Strategy Source: Preqin

Fig. 4: Sample Investor Fund Searches Issued in May 2018 Investor Type Location Investment Plans for Next 12 Months Plans to invest $10-25mn in up to five hedge funds over the next 12 Fund of Hedge USCA Asset Management US months, focusing on long/short equity and equity market neutral strategies Funds Manager and investing through systematic and high volatility trading styles. Private Sector Expects to make opportunistic investments in hedge funds over the next 12 Tfl Pension Fund UK Pension Fund months, focusing on macro strategies such as commodities. Will invest in 2-3 hedge funds managed by Asia-based managers, focusing Samsung Securities Investment Company South Korea on multi-strategy vehicles. The investment company will primarily look to use new managers in its portfolio.

Source: Preqin

JULY 2018

Conference Dates Location Organizer Preqin Speaker Discount Code Family Office & Private Wealth 16 - 18 July 2018 Newport, RI Opal Financial Group - - Management Forum

SEPTEMBER 2018

Conference Dates Location Organizer Preqin Speaker Discount Code 10% Discount - FundForum Asia 2018 3 - 5 September 2018 Hong Kong KNect365 TBC FKN2544PQL 15% Discount - Total Alts 6 - 7 September 2018 San Francisco, CA IMN - PQ15 Preqin Breakfast Seminar – Future of 12 September 2018 London Preqin - - Alternatives - London Emerging Managers Summit 12 - 13 September 2018 New York, NY Opal Financial Group - - CT Hedge Fund CTHFA Q3 Event 13 September 2018 Greenwich, CT - - Association CTA Expo Chicago 13 September 2018 Chicago, IL CTA Expo - - Patrick Adefuye 10% Discount - SuperReturn Asia 17 - 20 September 2018 Hong Kong KNect365 Mark O'Hare FKR2449PRQ Catalyst Financial L/S Equity Fund Investing 17 September 2018 New York, NY - - Partners 20% Discount - Finovate Fall 24 - 26 September 2018 New York, NY KNect365 - FKV2343PQT Brazil Breakfast in association with LAVCA's Annual Summit and Investor 25 September 2018 New York, NY ABVCAP - - Roundtable

OCTOBER 2018

Conference Dates Location Organizer Preqin Speaker Discount Code Local Government Pension 3 October 2018 London KNect365 - - Investment Forum Latin Private Wealth Management marcus evans 8 - 9 October 2018 Panama City - - Summit Summits Credit | Fixed Income Alternative Catalyst Financial 15 October 2018 New York, NY - - Investing Partners 11th Annual Canadian Hedge Fund 16 October 2018 Toronto Alternative IQ - - Conference Hedge Fund Emerging & Startup 17 October 2018 Zurich KNect365 - - Manager Forum

FLAIA Meeting of the Americas 2018 18 October 2018 Miami, FL FLAIA - -

MFA Outlook 18 October 2018 New York, NY MFA - - Private Wealth Management Summit marcus evans 22 - 24 October 2018 Macao - - - APAC Summits GAIM Ops West Coast 22 - 24 October 2018 Rancho Mirage CA KNect365 - - Family Office & Private Wealth Forum 24 - 26 October 2018 Napa, CA Opal Financial Group - - – West Finovate Asia 29 - 30 October 2018 Hong Kong KNect365 - -

13TH ANNUAL ALTERNATIVE INVESTMENT CONSULTANTS SUMMIT

DATE: 25 July 2018 INFORMATION: www.investmentmanagementinstitute.com LOCATION: The Stamford Hilton Hotel ORGANIZER: Investment Management Institute Hear from institutional investors, consultants and family offices on developing new business opportunities, plus getting into searches. Learn the keys to building relationships and trust to gain the edge on other managers.

Investment Management Institute 13th Annual Alternative Investment Consultants Summit

July 25, 2018– The Stamford Hilton Hotel

Each year IMI has been proud to bring together outstanding leaders in the Alternative Investment Community to share their insights on proven techniques to shorten the sales cycle, offering solutions for needs of institutional and private clients. At this event we feel you will learn some of the challenges that are faced in this industry with managing risk and raising assets.