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Relative Value Funds Download Data View the full edition of Spotlight at: https://www.preqin.com/docs/newsletters/HF/Hedge_Fund_Spotlight_January_2013.pdf Funds Relative Value Funds Download Data Relative Value Funds Simon Dhadwal examines the key stats on relative value funds. Fig. 1: Relative Value Strategies Launched by Year of Inception and Fig. 2: Breakdown of Relative Value Funds by Strategy Strategy 100% 3% 4% 2% 2% 4% 8% 8% 9% 14% 14% 15% 18% Statistical Arbitrage Equity Market Neutral 90% 16% 22% 19% 19% 2% 16% 10% 12% 22% 22% 13% 13% 3% 30% 80% Fixed Income Arbitrage 18% Relative Value 11% 15% 16% Arbitrage 14% 70% 21% 15% 22% 29% 20% 38% 34% 28% Convertible Arbitrage 60% 26% Fixed Income Arbitrage 20% 24% 19% 39% Relative Value Arbitrage 50% 25% 28% 27% 14% Equity Market Neutral 9% 40% 14% Statistical Arbitrage 34% 41% 28% Funds Launched 36% 30% 35% Convertible Arbitrage 42% 36% 26% 54% 42% 26% Capital Structure Arbitrage 29% 20% 39% 34% 31% Proportion of Total Relative Value Relative Value Proportion of Total Capital Structure 10% 20% 8% Arbitrage 16% 14% 13% 12% 7% 6% 5% 6% 0% 4% 1% 2% 2% 1% 2% Pre- 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Preqin Hedge Fund Analyst Source: Preqin Hedge Fund Analyst Fig. 3: Breakdown of Relative Value Funds by Regional Focus Subscriber Quicklink: 45% 43% 40% Subscribers can click here to see a list of 3,956 relative value 35% hedge funds in market, including inception date, core strategies 30% and performance data. 26% 25% Hedge Fund Analyst provides all the latest data and intelligence 20% on hedge funds in one place, including fund performance, fund 15% 14% strategies, fund managers and fund terms. Proportion of Funds 11% 10% 6% For a demo of Hedge Fund Analyst, or to get information on how 5% this useful tool can help you, please visit: 0% North America Europe Asia-Pacific Emerging Markets Global www.preqin.com/hfa Region Source: Preqin Hedge Fund Analyst Fig. 4: Leading Relative Value Funds Fund Firm Firm Location Inception Date Core Strategies Size ($bn) BlueMountain Credit Alternatives BlueMountain Capital US 01-Nov-2003 Equity Market Neutral 5.1 BlueMountain Credit Alternatives is a multi-strategy credit fund with an equity market neutral relative value approach. The fund trades a range of credit- oriented strategies, including long/short credit, capital structure, curve and basis trades, index arbitrage, structured credit, asset-backed securities and volatility. Nektar Brummer & Partners Sweden 01-Jan-1998 Equity Market Neutral 3.9 Nektar actively invests in fi xed income markets worldwide, but also trades currencies and equities. Individual positions are balanced against each other with the objective of achieving a balanced level of risk exposure for the fund as a whole. Pine River Fixed Income Master Pine River Capital US 01-Sep-2008 Fixed Income Arbitrage 3.6 Fund Management Pine River Fixed Income Fund, formerly known as Nisswa Fixed Income Fund, aims to profi t from pricing ineffi ciencies in the residential mortgage market, and to other related markets, within a relative value framework. The fund invests in agency and non-agency mortgages, including derivatives. PIMCO Absolute Return PIMCO US 05-Apr-2002 Fixed Income Arbitrage 2.8 Strategy IV PIMCO Absolute Return Strategy IV (PARS IV) seeks to produce absolute returns by expressing PIMCO's top long and short investment ideas across all sectors of developed and developing country fi xed income and currency markets. PARS IV also looks to enhance returns through fl exible investment guidelines, which allow for the addition of bottom-up, relative value trades. Source: Preqin Hedge Fund Analyst 17 Hedge Fund Spotlight, January 2013 © 2013 Preqin Ltd. www.preqin.com.
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