HEDGE FUNDS IN CHICAGO

In this factsheet we use the data available on Preqin's 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 launches and liquidations over the past 10 years.

Find out more on page 9

HEDGE FUND

SPOTLIGHTVOLUME 10, ISSUE 5 ■ JUNE 2018

IN THIS ISSUE THE BIGGEST HEDGE FUND LAUNCHES OF 2018

This feature focuses on the biggest hedge fund launches in the year so far, listing these funds' investment preferences and plans as well as their competition in the market and possible investors.

Find out more on page 2

SIGN UP

Sign up to Spotlight, our free monthly newsletter, providing insights into performance, investors, deals and

fundraising, powered by Preqin data:

All data in this newsletter can be downloaded to Excel for free

www.preqin.com/contact info@preqin.com

Alt Credit Intelligence European and US Fund Services Awards: Best Data and Information 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

FEATURE The Biggest Hedge Fund Launches of 2018

2

INDUSTRY NEWS 6

THE FACTS■ Performance Benchmarks■ Hedge Funds in Chicago■ Hedge Funds in Europe■ Fund Searches and Mandates

8

9

10

13

CONFERENCES 14

JUST RELEASED: PREQIN MARKETS IN FOCUS: ALTERNATIVE ASSETS IN EUROPE

PREQIN MARKETS IN FOCUS:ALTERNATIVE ASSETS IN EUROPEJune 2018

Download Your Copy

THE BIGGEST HEDGE FUND LAUNCHES OF 2018

© Preqin Ltd. 2018 / www.preqin.com2 Hedge Fund Spotlight | June 2018

THE BIGGEST HEDGE FUND LAUNCHES OF 2018

Of the 183 hedge funds that have launched so far in 2018, three have managed to attract a combined $14bn. The firms responsible for 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).

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.

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2013 2014 2015 2016 2017 2018YTD

Niche Strategies

Multi-Strategy

Managed Futures/CTA

Relative Value Strategies

Credit Strategies

Event Driven Strategies

Macro Strategies

Equity Strategies

Source: PreqinYear of Inception

Fig. 3: Hedge Fund Launches by Top-Level Strategy and Year of Inception, 2013 - 2018 YTD (As at June 2018)

No.

of F

und

Laun

ches

Preqin's online platform incorporates all of our hedge fund data, intelligence and functionality. Updated on a daily basis by teams of skilled research analysts based around the globe, the platform is a vital source of data and information for fund managers, investors, service providers and other professionals in the industry.

Search for detailed profiles on over 9,500 hedge fund managers around the world, view data on over 16,000 hedge funds that are currently raising capital or access industry benchmarks by strategy, geographic focus, fund size and more. For more information, please visit:

www.preqin.com/hedgefunds

PREQIN’S ONLINE PLATFORM

154192

242 253277

337299

354408

487

425460

516 506446

392337

246

38

0

100

200

300

400

500

600

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

YTD

Source: PreqinYear Established

Fig. 1: Hedge Fund Managers by Year Established, 2000 - 2018 YTD (As at June 2018)

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

YTD

No. of Fund Launches No. of Fund Liquidations

Source: Preqin

Year of Inception/Liquidation

Fig. 2: Hedge Fund Launches and Liquidations by Year of Inception/Liquidation, 2000 - 2018 YTD (As at June 2018)

No.

of F

und

Man

ager

s

No.

of F

und

Laun

ches

/Li

quid

atio

ns

THE BIGGEST HEDGE FUND LAUNCHES OF 2018

© Preqin Ltd. 2018 / www.preqin.com3 Hedge Fund Spotlight | June 2018

FIRMD1 Capital

FUNDD1 Capital Partners

STRATEGYLong/Short Equity

LOCATIONNew York, US

KEY PERSON(S)Daniel Sundheim

ABOUT: D1 Capital was founded in 2017 by former Viking Global Investors CIO, Daniel Sundheim, and is 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 positions, and will also invest in private equity through a side pocket. Investors can choose between different fee options, with a management fee of 1.00-1.75% and a performance fee of 20.00-25.00%.

THE COMPETITION

■ Fifty-one other long/short-equity focused funds have launched so far in 2018.

■ There are 20 other long/short equity funds with $4bn or more in AUM, of which 17 are open to investment.

■ Equity funds saw $7.6bn in net outflows in Q1 2018; 42% of equity funds saw inflows over this period.

■ Old Mutual Global Equity Absolute Return Fund is the largest active long/short equity fund open to investment with $15bn in AUM, with Switzerland-based EFG Asset Management among its investors.

POSSIBLE INVESTORS

■ There are 263 investors currently searching for long/short equity funds in 2018.

■ Among these is CIR Group, which will look to invest in long/short equity and macro funds in 2018 with a preference for US-based managers.

■ Preqin tracks 98 investors currently investing in Sundheim’s former firm, Viking Global Investors, 21 of which have expressed an interest in investing in spin-off firms.

D1 CAPITAL

EXODUSPOINT CAPITAL MANAGEMENT

FIRMExodusPoint

Capital Management

FUNDExodusPoint

Partners Master Fund

STRATEGYMulti-Strategy

LOCATIONNew York, US

KEY PERSON(S)Michael GelbandHyung Soo Lee

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

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

THE COMPETITION

■ Fourteen other multi-strategy hedge funds have launched so far in 2018.

■ There are six other multi-strategy-focused hedge funds with $8bn or more in AUM, of which four are open to investment.

■ Multi-strategy funds saw $0.5bn in net outflows in Q1 2018, and 45% of multi-strategy funds saw inflows over this period.

■ Standard Life Global Absolute Return Strategies Fund is the largest active multi-strategy fund open to investment with £21bn in AUM.

POSSIBLE INVESTORS

■ There are 152 investors currently searching for multi-strategy funds in 2018.

■ Among these is UK-based pension fund RHM Pension Scheme, which is looking for new funds over 2018. The pension fund invests directly and prefers multi-strategy vehicles.

■ Preqin tracks 71 investors that currently invest in Gelband’s former firm, Millennium Management, 16 of which have expressed interest in spin-off firms.

THE BIGGEST HEDGE FUND LAUNCHES OF 2018

© Preqin Ltd. 2018 / www.preqin.com4 Hedge Fund Spotlight | June 2018

FIRMPoint72 Asset Management

FUNDSCubist Core Investments,

Cubist Short Horizon Investments I & II,

Point72 Associates I & II, Point72 Domestic

Investments, Point72 Global Macro

Investments

STRATEGIESLong/Short Equity,

Macro, Multi-Strategy

LOCATIONConnecticut, US

KEY PERSON(S)Steve Cohen

ABOUT: Industry veteran and former SAC Capital Advisors founder, Steve Cohen, created Point72 Asset 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.

THE FUND: In January 2018, the firm launched seven hedge funds which, between them, employ three core strategies: long/short equity, macro and multi-strategy. Each fund has a 2.75% management fee and a performance fee of 10.00-30.00%.

THE COMPETITION

■ Eighty-two other long/short equity, macro and multi-strategy funds have launched so far in 2018.

■ Luxor Capital Partners is a long/short equity fund with $3bn in AUM targeting investments globally. The fund’s investors include many pension funds, including New York City Police Pension Fund.

POSSIBLE INVESTORS

■ There are 272 investors currently searching for long/short equity, macro and multi-strategy funds in 2018.

■ New York Presbyterian Hospital will target event driven, long/short equity, multi-strategy and relative value arbitrage funds in 2018, focusing on North America and Europe.

POINT72 ASSET MANAGEMENT

FIRMKirkoswald

Capital Partners

FUNDKirkoswald Global

Macro Master Fund

STRATEGYMacro

LOCATIONLondon, UK

KEY PERSON(S)Greg Coffey

ABOUT: Formerly known as Abbeville Partners, Kirkoswald Capital Partners is a global macro hedge fund 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.

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

THE COMPETITION

■ Twenty-four other macro-focused hedge funds have launched so far in 2018.

■ There are 30 other macro-focused hedge funds with $2bn or more in AUM, of which 21 are open to investment.

■ Macro funds saw $1.3bn in net outflows in Q1 2018, and 48% of macro funds saw inflows over this period.

■ Eaton Vance Global Macro Absolute Return Advantage Fund, a ’40 Act fund which invests in both developed and emerging markets, saw fresh investment from Pennsylvania State Employees’ Retirement System in Q1 2018.

POSSIBLE INVESTORS

■ There are 161 investors currently searching for macro-focused funds in 2018.

■ Church Commissioners for England is currently assessing macro strategies alongside quant and long/short equity for potential investment in 2018.

■ Preqin tracks 57 investors currently investing in Coffey’s former firm, Moore Capital Management. Seventeen of these investors have expressed an interest in investing in spin-off firms.

KIRKOSWALD CAPITAL PARTNERS

THE FACTS

© Preqin Ltd. 2018 / www.preqin.com5 Hedge Fund Spotlight | June 2018

BE SEENby thousands of investors and decision-makers around the world

CONTRIBUTEto industry benchmarks and help further research into this area

ENSUREthat the data we hold for your firm and funds is correct

REASONS TOCONTRIBUTE DATA

Contributing data is free and simple. For more information, please visit:

www.preqin.com/sharedata

GENERATEincoming leads from industry professionals seeing your profile

INDUSTRY NEWS

© Preqin Ltd. 2018 / www.preqin.com6 Hedge Fund Spotlight | June 2018

INDUSTRY NEWS

EVENT DRIVEN FUNDS POST GAINS IN MAY 2018

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.

As shown in the chart above, North America-based hedge funds saw outflows 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 2017.

The positive inflows in Europe in 2017 are translating into a more active 2018 when it comes to new European products hitting the market, as it appears that managers in Europe are anticipating more opportunities. As seen in Preqin's November 2017 survey of hedge fund managers, 39% of Europe-based managers reported they had 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 expected to flow into hedge funds from Europe-based investors and funds.

For more information, please see our recently released Preqin Markets in Focus: Alternative Assets in Europe report.

CHART OF THE MONTH

Event driven strategies outperformed all other top-level strategies for the second consecutive month, with gains of 1.61% in May. Among these funds is Numen Credit Opportunities Master Fund, which generated the highest individual return (+14.71%) of the month. Managed by London-based Numen Capital, the special situations-focused hedge fund was launched in November 2008, and primarily focuses on opportunities in Europe.

Another fund that generated strong returns in May is Accendo Capital, a €74mn fund focused on investments in small- and mid-sized publicly listed companies in Northern Europe that are driving or benefitting from technological innovation, which returned 8.41%.

Black Crane Asia Opportunities Fund, which is managed by Hong Kong-based Black Crane Capital, posted gains of 7.93% in May. The vehicle looks to take a mixture of long and short positions on investment opportunities across Asia, with a time horizon of 6-24 months.

Systematic Absolute Return, a Switzerland-based fund of hedge funds manager, is planning to invest in 20-25 hedge funds in the next 12 months across a globally diversified set of strategies.

Germany-based asset manager KONTOR STÖWER Asset Management will target single-manager vehicles focused on special situations and macro strategies in Europe, and will use a mixture of new and existing managers in its portfolio.

Valida Pension Management expects to invest in three hedge funds in the next 12 months using new managers it has not previously worked with. The Austria-based corporate pension fund will focus on macro strategies and managed futures/CTAs with a global reach, typically investing €50-100mn per hedge fund.

EUROPE-BASED INVESTOR SEARCHES ISSUED IN 2018

-8.0

11.114.4

9.4

18.6

9.0

-7.5

-15.3-20

-15

-10

-5

0

5

10

15

20

25

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Europe

North America

Source: Preqin Markets in Focus: Alternative Assets in Europe

Net

Ass

et F

low

s (€

bn)

Asset Flows: Europe- vs. North America-Based Hedge Funds, Q1 2017 - Q4 2017

Do you have any news you would like to share with the readers of Spotlight?

Send your updates to spotlight@preqin.com and we will endeavour to publish them in the next issue.

SHARE YOUR NEWS

PREQIN GLOBAL DATA COVERAGE

+PLUS

Comprehensive coverage of:

+ Placement Agents + Dry Powder+ Fund Administrators + Compensation+ Law Firms + Plus much more...+ Debt Providers

THE PREQIN DIFFERENCE+ Over 390 research, support and development staff+ Global presence - New York, London, Singapore, San Francisco, Hong Kong, Manila and Guangzhou+ Depth and quality of data from direct contact methods+ 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.

PRIVATE EQUITY* HEDGE FUNDS REAL ESTATE INFRASTRUCTURE PRIVATE DEBT NATURAL

RESOURCES

INVESTORCOVERAGE

7,284Active

Private Equity LPs

5,497Active

Hedge Fund Investors

6,549Active

Real Estate LPs

3,462Active

InfrastructureLPs

3,351Active

Private Debt Investors

3,411Active

Natural Resources Investors

FUNDCOVERAGE

20,841Private Equity

Funds

26,539Hedge Funds

7,343PE Real Estate

Funds

1,343Infrastructure

Funds

2,648Private Debt

Funds

2,068Natural Resources

Funds

FIRMCOVERAGE

15,149Private Equity Firms

9,651Hedge Fund

Firms

5,044PE Real Estate

Firms

563Infrastructure

Firms

1,666Private Debt

Firms

1,072Natural Resources

Firms

PERFORMANCECOVERAGE

6,170Private Equity

Funds

18,678Hedge Funds

1,873PE Real

Estate Funds

276Infrastructure

Funds

890Private Debt

Funds

582Natural Resources

Funds

FUNDRAISINGCOVERAGE

2,901Private Equity

Funds

17,516Hedge Funds

1,274PE Real

Estate Funds

183Infrastructure

Funds

368Private Debt

Funds

268Natural Resources

Funds

Alternatives Investment Consultants Coverage:

581Consultants Tracked

Funds Terms Coverage: Analysis Based on Data for Around

18,161Funds

Best Contacts: Carefully Selected from our Database of over

463,226Contacts

2015 Annual CAIA CorporateRecognition Award Winner

As at 1st June 2018

ALTERNATIVES COVERAGE

FIRMS FUNDS FUNDS OPEN TO INVESTMENT

INVESTORSMONITORED

FUNDS WITH PERFORMANCE DEALS & EXITS

33,145 60,782 22,510 16,649 28,469 343,345

DEALS & EXITSCOVERAGE

BUYOUT VENTURE CAPITAL REAL ESTATE INFRASTRUCTURE PRIVATE DEBT

89,018Buyout Deals and Exits

161,642Venture Capital Deals

and Exits

55,947Real Estate Deals

28,224Infrastructure Deals

8,514Private Debt Deals

THE FACTS

© Preqin Ltd. 2018 / www.preqin.com8 Hedge Fund Spotlight | June 2018

SINGLE-MANAGERHEDGE FUNDS May-18 Apr-18 2018 YTD 12 Months 12M Trend

Hedge Funds 0.49 0.70 1.43 8.12

HF - Event Driven Strategies 1.61 0.47 2.25 7.72HF - Equity Strategies 0.81 0.76 1.63 10.39HF - Relative Value 0.20 0.59 1.22 3.83HF - Macro Strategies 0.04 0.39 0.83 4.59HF - Credit Strategies -0.18 0.35 1.61 5.10HF - Multi-Strategy -0.56 0.81 0.80 6.92Activist 1.34 0.99 2.01 8.82Discretionary 1.12 0.70 2.23 9.13Volatility 0.22 0.65 0.39 5.80Systematic -0.41 0.36 0.20 4.99HF - North America 1.92 0.62 2.88 8.84HF - Europe 1.07 1.56 2.12 5.39HF - Developed Markets 0.86 0.38 1.75 6.71HF - Asia-Pacific 0.06 -0.02 -0.10 10.48HF - Emerging Markets -1.71 0.20 0.21 8.26HF - GBP 1.17 1.13 1.68 4.58HF - EUR 1.04 0.65 1.13 3.02HF - USD 0.76 0.48 1.56 8.49HF - JPY -1.22 0.83 -1.88 6.04HF - BRL -2.43 1.24 2.44 12.26HF - Large* 0.78 0.61 2.26 6.88HF - Small* 0.46 0.38 1.91 8.67HF - Emerging* 0.39 0.73 0.86 7.94HF - Medium* 0.13 0.83 2.10 7.96

Source: Preqin

Preqin’s online platform is the leading source of intelligence on the hedge fund industry, and contains performance information for over 16,000 hedge funds across all leading strategies and geographies.

For more information, or to arrange a demonstration, please visit:

www.preqin.com/hedgefunds

PREQIN’S HEDGE FUND DATA

Please note, all performance information includes preliminary data for May 2018 based on net returns reported to Preqin in early June 2018. Although stated trends and comparisons are not expected to alter significantly, final benchmark values are subject to change.

*Preqin fund size classifications: Emerging (less than $100mn); Small ($100-499mn); Medium ($500-999mn); Large ($1bn plus).

LIQUID ALTERNATIVES May-18 Apr-18 2018 YTD 12 Months 12M Trend

Alternative Mutual Funds 1.15 0.43 0.91 5.10

UCITS -0.52 0.37 -0.62 2.12

UCITS - Relative Value 0.14 -0.10 0.02 0.75UCITS - Equity Strategies -0.22 0.67 0.12 5.10UCITS - Macro Strategies -1.90 0.87 -1.22 -0.22UCITS - EUR -0.42 0.49 -0.76 1.07UCITS - USD -0.57 0.10 -0.04 4.73

Source: Preqin

CTAS May-18 Apr-18 2018 YTD 12 Months 12M Trend

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

Source: Preqin

■ The Preqin All-Strategies Hedge Fund benchmark generated 0.49% in May, the benchmark’s second consecutive month of positive returns.

■ Event driven strategies outperformed all other top-level strategies for the second consecutive month with gains of 1.61% in May, bringing the year-to-date return of the strategy to 2.25%.

■ Credit strategies (-0.18%) and multi-strategy vehicles (-0.56%) were the only top-level strategies that suffered losses in May.

■ Hedge funds focused on North America (+1.92%) performed particularly well, outperforming Europe-focused funds (+1.07%), reversing the April return and achieving the benchmark’s best result since November 2016 (+2.58%).

MULTI-MANAGER HEDGE FUNDS May-18 Apr-18 2018 YTD 12 Months 12M Trend

Funds of Hedge Funds 1.03 0.40 1.45 4.94FOHF - Equity Strategies 1.50 0.54 1.89 7.35FOHF - Multi-Strategy 0.70 0.35 1.17 4.03FOHF - USD 1.77 0.25 2.58 6.69FOHF - EUR 1.08 0.22 0.89 2.78Funds of CTAs -1.94 0.57 -2.68 -2.86

Source: Preqin

PERFORMANCE BENCHMARKS

THE FACTS

© Preqin Ltd. 2018 / www.preqin.com9 Hedge Fund Spotlight | June 2018

HEDGE FUNDS IN CHICAGOWe 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.

23%

17%

15%

14%

9%

9%

7%7%

Foundation

Fund of Hedge FundsManager

Endowment Plan

Private Sector PensionFund

Public Pension Fund

Wealth Manager

Family Office

Other

Source: Preqin

Fig. 1: Chicago-Based Investors in Hedge Funds by Investor Type

33%

25%

13%

12%

5%

4%4% 4%

Equity Strategies

Managed Futures/CTA

Multi-Strategy

Relative Value Strategies

Credit Strategies

Event Driven Strategies

Macro Strategies

Niche Strategies

Source: Preqin

Fig. 2: Active Chicago-Based Hedge Funds by Top-Level Strategy

43%56%

18%

9%12%

16%9%

3%16% 9%

2% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chicago-Based HedgeFund Managers

All Other Illinois-BasedHedge Fund Managers

$10bn or More

$1-9.9bn

$500-999mn

$250-499mn

$100-249mn

Less than $100mn

Source: Preqin

Fig. 3: Assets under Management: Chicago- vs. All Other Illinois-Based Hedge Fund Managers

Prop

ortio

n of

Hed

ge F

und

Man

ager

s

3024

1525

39

55

4134 32

48

2

1 2 3 4 4 5

20

94

-30-20-10

0102030405060

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

YTD

No. of Fund Launches No. of Fund Liquidations

Source: Preqin

Fig. 4: Chicago-Based Hedge Fund Launches and Liquidations by Year of Inception/Liquidation, 2008 - 2018 YTD (As at June 2018)

Year of Inception/Liquidation

No.

of F

und

Laun

ches

/Liq

uida

tions

Fig. 5: Largest Chicago-Based Hedge Fund Managers by Total Assets under Management

Manager Year Established

Assets under Management

Citadel Advisors 1990 $27.1bn as at 31 December 2017

Balyasny Asset Management 2001 $10.8bn as at 31 March 2018

Driehaus Capital Management 1982 $8.6bn as at 30 April 2018

Chicago Equity Partners, LLC 1989 $6.8bn as at 31 December 2017

O'Connor 2000 $5.5bn as at 1 December 2017

Source: Preqin

Fig. 6: Largest Chicago-Based Institutional Investors by Current Allocation to Hedge Funds (As at May 2018)

Investor Type Current Allocation to Hedge Funds ($bn)

Boeing Company Pension Fund

Private Sector Pension Fund 6.4

University of Chicago Endowment

Endowment Plan 2.5

Exelon Corporation Pension Fund

Private Sector Pension Fund 2.2

Continental Casualty Company

Insurance Company 1.5

John D. and Catherine T. MacArthur Foundation Foundation 1.2

Source: Preqin

THE FACTS

© Preqin Ltd. 2018 / www.preqin.com10 Hedge Fund Spotlight | June 2018

HEDGE FUNDS IN EUROPEUsing 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.

137

244280 300 273

190

36

237 215

290357 332 327 338 321 315

273

179

21

-400

-300

-200

-100

0

100

200

300

400

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

YTD

No. ofLaunches

No. ofLiquidations

Source: Preqin Markets in Focus: Alternative Assets in Europe

Fig. 1: Europe-Based Hedge Fund Launches and Liquidations, 2007 - 2018 YTD (As at March 2018)

33%

14%

8%

12%

8%

14%

10%1% Equity Strategies

Macro Strategies

Event DrivenStrategies

Credit Strategies

Relative ValueStrategies

Managed Futures/CTA

Multi-Strategy

Niche Strategies

Source: Preqin Markets in Focus: Alternative Assets in Europe

Fig. 2: Europe-Based Hedge Funds by Top-Level Strategy

63%

31%

5% 1%

Commingled Fund

UCITS

Managed Account

Alternative MutualFund

Source: Preqin Markets in Focus: Alternative Assets in Europe

Fig. 3: Europe-Based Hedge Funds by Structure

22%

17%

11%10%

9%

8%

7%

5%4%

6%

Private Sector Pension Fund

Fund of HF Manager

Wealth Manager

Family Office

Asset Manager

Public Pension Fund

Foundation

Insurance Company

Bank/Investment Bank

Other

Source: Preqin Markets in Focus: Alternative Assets in Europe

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

5.38.7

22.9

-8.5

7.5

-9.9

-15.0 -15.3

-8.0

11.114.4

9.4

-8.0

-20

-15

-10

-5

0

5

10

15

20

25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Source: Preqin Markets in Focus: Alternative Assets in Europe

Qua

rter

ly A

sset

Flo

ws

(€bn

)

Fig. 5: Quarterly Europe-Based Hedge Fund Asset Flows, Q1 2015 - Q1 2018

2.21% 1.89% 1.19%

-0.21%

5.16% 4.75%6.33%

-1.69%

4.44%

-2.53%-4.06%

-3.98%

-3.12%

5.08%

-0.14%

0.82%

4.27%

-8.21%

-3.63%

1.38% 1.94%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Q2

2017

Q3

2017

Q4

2017

Q1

2018

12 M

onth

s

3-Ye

arAn

nual

ized

5-Ye

arAn

nual

ized

Europe-FocusedHedge Funds

EURO STOXX 50Index

FTSE 100 Index

Source: Preqin Markets in Focus: Alternative Assets in Europe

Net

Ret

urn

Fig. 6: Performance of Europe-Focused Hedge Funds vs. All Hedge Funds and Public Market Indices

Year of Inception/Liquidation

No.

of F

und

Laun

ches

/Liq

uida

tions

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

We have

250+multilingual research analysts based in the US,

London, Hong Kong, Singapore and China.

Each month our team has thousands of conversations with investors to find out more

about their alternative investments.

With researchers on the ground, Preqin is the first to find out the latest hedge fund searches

among the

5,250+institutions worldwide.

Our fully searchable database allows you to target those investors interested in your fund

and to find contact details for more than

12,000key decision makers at these institutions.

7out of the top

10hedge funds that saw the largest

inflows in 2017 rely on Preqin data.

6,500investment professionals in

90+countries use Preqin’s data.

56754613

06801970

41574302

86045684

13279568

41025486

15423148

65749801

64535790

46830241

86304726

83185264

85790149

56575168

94647864

3xFrom Q1 to Q3 2017 Preqin

subscribers raised 3x more hedge fund capital than non-subscribers.

PREQIN IS HELPING RAISE CAPITAL FOR HEDGE FUNDS TODAY

HOW PREQIN HELPS TO RAISE CAPITAL FOR HEDGE FUNDS

Investors have indicated they are looking for up to

990new hedge funds in the

next 12 months.

The average hedge fund investor looking to make new investments in the next 12 months

plans to invest between

$95mnand

$121mn

With over

5,250investors profiled on the Preqin platform, we

can help pinpoint those investors that are looking for you.

988 989 991 992990

Forward-looking data on future plans and full

investment history of each institution.

Strategy, fund type and geographic preferences for

each institution.

AUM and track record requirements of investors

in hedge funds.

Full contact details for key decision makers, including

the best method to approach the investor.

Fund-level investments on a named basis to see who they have invested

with and how that fund is performing.

HOW PREQIN CAN HELP YOU FUNDRAISE IN 2018

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

PREQIN CAN HELP RAISE CAPITAL FOR YOUR HEDGE FUNDS IN 2018

TAILOR YOUR PITCH USING PREQIN DATA

CONTACT US

THE FACTS

© Preqin Ltd. 2018 / www.preqin.com13 Hedge Fund Spotlight | June 2018

FUND SEARCHES AND MANDATES

Fig. 4: Sample Investor Fund Searches Issued in May 2018

Investor Type Location Investment Plans for Next 12 Months

USCA Asset Management Fund of Hedge Funds Manager US

Plans to invest $10-25mn in up to five hedge funds over the next 12 months, focusing on long/short equity and equity market neutral strategies and investing through systematic and high volatility trading styles.

Tfl Pension Fund Private Sector Pension Fund UK Expects to make opportunistic investments in hedge funds over the next 12

months, focusing on macro strategies such as commodities.

Samsung Securities Investment Company South KoreaWill invest in 2-3 hedge funds managed by Asia-based managers, focusing on multi-strategy vehicles. The investment company will primarily look to use new managers in its portfolio.

Source: Preqin

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.

48%

36%

6%

10%

North America

Europe

Asia-Pacific

Rest of World

Source: Preqin

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

66%

10%

8%

4%4%

3%1% 4%

Fund of Hedge FundsManager

Family Office

Wealth Manager

Endowment Plan

Bank/Investment Bank

Public Pension Fund

Asset Manager

Other

Source: Preqin

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

24%

16% 16%14%

10%9%

7% 7% 7%5%

0%

5%

10%

15%

20%

25%

30%

Long

/Sho

rt E

quity

Long

/Sho

rt C

redi

t

Mac

ro

Fixe

d In

com

e

Equi

ty M

arke

tN

eutr

al

Dis

tres

sed

Asse

t-Bac

ked

Lend

ing

Even

t Dri

ven

Mul

ti-St

rate

gy

Cryp

tocu

rren

cy

Source: Preqin

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

Subscribers to Preqin's online platform can click here to view detailed profiles of 367 institutional investors in hedge funds actively searching for new investments.

Preqin tracks the future investment plans of investors in hedge funds, allowing subscribers to source investors actively seeking to invest capital in new hedge fund investments.

Not yet a subscriber? For more information, or to arrangea demonstration, please visit:

www.preqin.com/hedge

DATA SOURCE:

Prop

ortio

n of

Fun

d Se

arch

es

Strategy

CONFERENCES

© Preqin Ltd. 2018 / www.preqin.com14 Hedge Fund Spotlight | June 2018

CONFERENCESJULY 2018

Conference Dates Location Organizer Preqin Speaker Discount Code

Family Office & Private Wealth Management Forum 16 - 18 July 2018 Newport, RI Opal Financial Group - -

SEPTEMBER 2018

Conference Dates Location Organizer Preqin Speaker Discount Code

FundForum Asia 2018 3 - 5 September 2018 Hong Kong KNect365 TBC 10% Discount - FKN2544PQL

Total Alts 6 - 7 September 2018 San Francisco, CA IMN - 15% Discount - PQ15

Preqin Breakfast Seminar – Future of Alternatives - London 12 September 2018 London Preqin - -

Emerging Managers Summit 12 - 13 September 2018 New York, NY Opal Financial Group - -

CTHFA Q3 Event 13 September 2018 Greenwich, CT CT Hedge Fund Association - -

CTA Expo Chicago 13 September 2018 Chicago, IL CTA Expo - -

SuperReturn Asia 17 - 20 September 2018 Hong Kong KNect365 Patrick Adefuye Mark O'Hare

10% Discount - FKR2449PRQ

L/S Equity Fund Investing 17 September 2018 New York, NY Catalyst Financial Partners - -

Finovate Fall 24 - 26 September 2018 New York, NY KNect365 - 20% Discount - FKV2343PQT

Brazil Breakfast in association with LAVCA's Annual Summit and Investor Roundtable

25 September 2018 New York, NY ABVCAP - -

OCTOBER 2018

Conference Dates Location Organizer Preqin Speaker Discount Code

Local Government Pension Investment Forum 3 October 2018 London KNect365 - -

Latin Private Wealth Management Summit 8 - 9 October 2018 Panama City marcus evans

Summits - -

Credit | Fixed Income Alternative Investing 15 October 2018 New York, NY Catalyst Financial

Partners - -

11th Annual Canadian Hedge Fund Conference 16 October 2018 Toronto Alternative IQ - -

Hedge Fund Emerging & Startup Manager Forum 17 October 2018 Zurich KNect365 - -

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 - APAC 22 - 24 October 2018 Macao marcus evans

Summits - -

GAIM Ops West Coast 22 - 24 October 2018 Rancho Mirage CA KNect365 - -

Family Office & Private Wealth Forum – West 24 - 26 October 2018 Napa, CA Opal Financial Group - -

Finovate Asia 29 - 30 October 2018 Hong Kong KNect365 - -

CONFERENCES

© Preqin Ltd. 2018 / www.preqin.com15 Hedge Fund Spotlight | June 2018

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.

13TH ANNUAL ALTERNATIVE INVESTMENT CONSULTANTSSUMMIT

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.