The Recent View of Hedge Fund Industry

Hedge Fund Introduction

According to Wikipedia hedge funds are open-ended funds for speculating capital appreciation as limited partnerships or

corporations by wide range of strategies Hedge funds has only 13 volatility of SampP 500 between 1993- 2010 They have

lower leverage 15- 25 compared with leverage 142 of investment banks Hedge funds put fund managerrsquos money and

investorsrsquo money together and act on the same interest when making investments They are private and have low

transparency and not regulated by SEC Even though some of them have extremely high return they cannot marketing them

self publicly Instead they have to raise capital privately Hedge fund managers are a small group of individuals with special

talent and have significant influence to the markets They keep making high risk and return investments by learning mistakes

under the pressure of investorsrsquo expectation every year They enjoy looking for information that are neglected by general

public and utilize their resources efficiently for beating the markets They invested in equity fixed income commodity or

currency market by a wide range of financial instruments such as stocks bonds futures forwards options swaps and so on

Sectors and screening approach and the degree of diversification also play significant roles in investment process Reference

on hedge fund history is in Appendixrsquos Time Line

Cannell Capital amp US Hedge Funds

Cannell Capital is a multi- strategy hedge fund in San Francisco and it offers both onshore funds to US investors and

offshore funds to foreign investors or tax-exempt investors In my opinion it belongs to longshort fund because its core

approach is to utilizing market neglect for earning profits in both long and short positions Due to compliance consideration

material data about Cannell Capital are not available to public According to Citirsquos report by March 2013 longshort hedge

fund account for 178 asset under management and 323 of total number of hedge funds and 6 year-to-date with

leverage ratio only 18 This indicates that longshort hedge funds are the majority players in the industry and longshort

strategy has the highest return during Spring 2013 Between October 2012 and March 2013 the sharpe ratio of longshort

strategy was only 015x compared with 033x of CTA strategy and 035x of even driven strategy Fixed income arbitrage

strategy convertible arbitrage and distressed strategy have the highest level of return with the lowest risk between March

2012 and March 2013 Due to the characteristic of multi-strategy and time difference all the above data cannot apply to

evaluate Cannell Capital Hedge funds are actively managed so they cannot be tracked accurately Especially for multi-

strategy hedge funds they have multi-characteristics for difference strategy at different degree

According to Wikipedia in 2013 about 62 of hedge fund located in North America $17 Trillion is managed by US hedge

funds According to Preqin Investors Survey about the time between 2010 and 2012 the hedge fund performance exceeds

investorsrsquo expectation had decreased by 16 the hedge fund performance meet expectation increased by 4 and the hedge

fund performance failed to meet expectation increased by 13 Longshort equity and CTA strategies consisted of 56 of

the hedge funds that fail to meet institutional investorsrsquo expectation by December 2012 This indicates more hedge funds are

no longer doing well because of talent dilution or too many bad hedge funds enter the markets However there are still

about 23 of the hedge funds meet investorrsquos satisfaction I donrsquot agree with talent dilution explanation If a good hedge fund

manager has enough special talent hersquos funds will keep outperforming the markets If a good hedge fund team went through

a dangerous situation they will learn from this experience and keep moving forward Hedge fund professionals are all

human and human make mistakes They are not perfect so they may have bad performance when market is dropping

significantly However if the market recover later they will earn much higher return than average market Their works are

paid off and their talent can fill the ldquoholerdquo in history Bloomerg Business Weeks shows that the HFRX Hedge Fund Index

rose slightly after 2008 financial crisis the net flows into hedge fund and funds of hedge funds recovery at a certain degree

after the crisis However the net flows in 2012 dropped significantly These are the proof about how bad hedge funds and the

fair of the crisis pull down average performance

There is an argument about ldquoif the Alpha of hedge fund is diluted by increasing number of hedge fundsrdquo and ldquothe fees are too

high for investorsrdquo Now letrsquos assume $5 Million principle is invested by an investor with 20 management fee 50

hurdle rate and 200 incentive fee According to BlackRock between 1997 and 2011 the spread of hedge fund

performance is between -181 and 243 By doing research we pick a good manager with 243 annual return

Beginning AUM ($) 5000000Ending AUM ($) 6215000Return 243Profit ($) 1215000Management Fee 20Management Fee ($) 124300Profit after Management Fee($) 1090700Hurdel Rate 50Profit for Hurdle Rate 250000Profit after Hurdle Rate ($) 840700Incentive Fee 200Incentive Fee ($) 168140Investors Return 185Investors Profit ($) 922560

As can be seen from the above calculation investor still have 185 return after paying all the fees But in reality some

hedge fund may not apply hurdle rate for inventive fee calculation the fees may changes according to negociation and some

hedge fund performs much better than a 243 return in a particular year or even only a quarter Each individual case has its

own calculation for their situation There is no right or wrong answer for this argument

Hedge Funds in China

According to Lehman Lee amp Xu Law Office hedge fund is not recognized officially for almost a decade in Mainland of

China by November 2012 under the Securities Law of Peoplersquos Republic of China Sunshine Fund a closed- end fund is a

representation of Chinese regulated ldquohedge fundsrdquo with absolute return strategy and short selling limitation It has higher

return and fewer restrictions on asset allocation compared to mutual funds and it has more transparency compared to private

offered funds According to Bloomberg Zhao Danyang established this fund in February 2004 The fundrsquos AUM had

reached $22 Billion by the time of 2nd Feb 2012 and it is only 3 of the total AUM of trust funds in China Sunshine Fund

charges similar fees as hedge fund to high-net-worth clients in China These millionaires own $27 Trillion wealth of Chinese

capital which is 127 times of 2012 global hedge fund AUM They are willing to pay higher fees for Sunshine Funds for

avoiding poor performance of stock markets Generally speaking rich Chinese have no much knowledge about hedge funds

and they always like to invest in real assets

Clifford Change Publications amp News claims that privately offered Chinese National Peoplersquos Congress released funds

provisions in July 2012 and this indicates the potential development opportunity of Chinese hedge fund In 1st June 2013

hedge funds in mainland China is recognized under the adjustment of Securities Investment Funds Law according to

Risknet Even though this is huge change of fund industry the short selling strategy still need time to be approved by

regulators Average knowledge of Chinese investors have not enough knowledge about hedge fund and it takes time for

mainland hedge fund development For hedge fund industry in Shanghai of China qualified Chinese investors may allowed

to invest in international hedge funds due to the effort of Shanghai Municipal Government Office according to COOConnect

News China Offshore News states that Hong Kong is to going to perform tax reform as a special administration region of

China This will create more benefits for private offshore equity funds on tax exemption aspect About 80 hedge funds are

not domiciled in Hong Kong currently According to Hong Kong Securities and Futures Commission between 2010 and

2012 SFC-Licensed hedge fund managers increased by 26 and AUM expended by 38 33 of them apply traditional

longshort strategy while 31 of them apply multi-strategy 65 of AUM is invested in Asia Pacific markets

Summary

Generally speaking hedge fund industry is vary depends on difference market movements The key point is how risk-loving

you are or how risk-averse you are Fee structure and fund manager picking are the core considerations for investors We

canrsquot predict future and no one can beat the market forever What we can do is to follow our strategies and make the most

reasonable decisions Good hedge funds are special market participants in the market for small group of wealthy and

extremely intelligent people If you can find them at the right time they will definitely offer you exciting returns Is has been

existed for about 90 years original from US and it will expand into China and other emerging markets at a larger degree in

future China mainland Shanghai and Hong Kongrsquos hedge fund development has a long way to go due to regulations

market conditions and customer preference The problem is not about investorsrsquo wealth and hedge fundrsquos ability it is about

how to balance all market participants for mutual benefits under a reasonable agreement

Appendix

Hedge Fund History Time Line

1920s 1st hedge fund Graham-Newman Partnership by Benjamin Graham and Jerry Newman

1949 ldquoHedge Fundrdquo named by financial journalist Alfred W Jones

1968 Hedge funds numbers reached 200

1969- 1970 1st fund of funds many longshort funds closed because of recession

1973- 1974 Many longshort funds closed because of stock market crash

1990s More hedge funds are created because of stock market recovery

2000- 2007 Expended to credit arbitrage distressed debt fixed income quantitative amp multi-strategy

2003 The 1st Qualified Foreign Institutional Investor Regime is granted in China

2004 Zhao Danyang established Sunshine Fund in mainland China which is similar to hedge funds

2008 AUM decreased for financial crisis

2009 Hedge fund AUM accounted for 11 capital of institutions

2010 Investors and institutions required larger transparency

US amp European regulations required more disclosure on valuation methods positions and leverage exposure

2011

Hedge Fund Manager CompensationTop No1 Manager

Average Top 25th Managers

Top 10th Manager

Top 30th Manager

$3000M $576M $210M $80M

Compensation Comparison CEO CIO ProfessionalsMean Compensation $1037K $1040K $691KMedian Compensation $600K $300K $312K

2011 Location Registered For Tax Consideration

Cayman Islands 34

US 24

Others 37

Luxemburg 10

Ireland 7

British Virgin Islands 6

Bermuda 3

Onshore 50

Offshore 50

2012 Sunshine Fund reached $22 Billions AUM (3 of Chine Trust Funds)

Hong Kong hedge fund AUM reached $87 Billions

2012 Percentage of People who work in Hedge Fund

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

investorsrsquo expectation had decreased by 16 the hedge fund performance meet expectation increased by 4 and the hedge

fund performance failed to meet expectation increased by 13 Longshort equity and CTA strategies consisted of 56 of

the hedge funds that fail to meet institutional investorsrsquo expectation by December 2012 This indicates more hedge funds are

no longer doing well because of talent dilution or too many bad hedge funds enter the markets However there are still

about 23 of the hedge funds meet investorrsquos satisfaction I donrsquot agree with talent dilution explanation If a good hedge fund

manager has enough special talent hersquos funds will keep outperforming the markets If a good hedge fund team went through

a dangerous situation they will learn from this experience and keep moving forward Hedge fund professionals are all

human and human make mistakes They are not perfect so they may have bad performance when market is dropping

significantly However if the market recover later they will earn much higher return than average market Their works are

paid off and their talent can fill the ldquoholerdquo in history Bloomerg Business Weeks shows that the HFRX Hedge Fund Index

rose slightly after 2008 financial crisis the net flows into hedge fund and funds of hedge funds recovery at a certain degree

after the crisis However the net flows in 2012 dropped significantly These are the proof about how bad hedge funds and the

fair of the crisis pull down average performance

There is an argument about ldquoif the Alpha of hedge fund is diluted by increasing number of hedge fundsrdquo and ldquothe fees are too

high for investorsrdquo Now letrsquos assume $5 Million principle is invested by an investor with 20 management fee 50

hurdle rate and 200 incentive fee According to BlackRock between 1997 and 2011 the spread of hedge fund

performance is between -181 and 243 By doing research we pick a good manager with 243 annual return

Beginning AUM ($) 5000000Ending AUM ($) 6215000Return 243Profit ($) 1215000Management Fee 20Management Fee ($) 124300Profit after Management Fee($) 1090700Hurdel Rate 50Profit for Hurdle Rate 250000Profit after Hurdle Rate ($) 840700Incentive Fee 200Incentive Fee ($) 168140Investors Return 185Investors Profit ($) 922560

As can be seen from the above calculation investor still have 185 return after paying all the fees But in reality some

hedge fund may not apply hurdle rate for inventive fee calculation the fees may changes according to negociation and some

hedge fund performs much better than a 243 return in a particular year or even only a quarter Each individual case has its

own calculation for their situation There is no right or wrong answer for this argument

Hedge Funds in China

According to Lehman Lee amp Xu Law Office hedge fund is not recognized officially for almost a decade in Mainland of

China by November 2012 under the Securities Law of Peoplersquos Republic of China Sunshine Fund a closed- end fund is a

representation of Chinese regulated ldquohedge fundsrdquo with absolute return strategy and short selling limitation It has higher

return and fewer restrictions on asset allocation compared to mutual funds and it has more transparency compared to private

offered funds According to Bloomberg Zhao Danyang established this fund in February 2004 The fundrsquos AUM had

reached $22 Billion by the time of 2nd Feb 2012 and it is only 3 of the total AUM of trust funds in China Sunshine Fund

charges similar fees as hedge fund to high-net-worth clients in China These millionaires own $27 Trillion wealth of Chinese

capital which is 127 times of 2012 global hedge fund AUM They are willing to pay higher fees for Sunshine Funds for

avoiding poor performance of stock markets Generally speaking rich Chinese have no much knowledge about hedge funds

and they always like to invest in real assets

Clifford Change Publications amp News claims that privately offered Chinese National Peoplersquos Congress released funds

provisions in July 2012 and this indicates the potential development opportunity of Chinese hedge fund In 1st June 2013

hedge funds in mainland China is recognized under the adjustment of Securities Investment Funds Law according to

Risknet Even though this is huge change of fund industry the short selling strategy still need time to be approved by

regulators Average knowledge of Chinese investors have not enough knowledge about hedge fund and it takes time for

mainland hedge fund development For hedge fund industry in Shanghai of China qualified Chinese investors may allowed

to invest in international hedge funds due to the effort of Shanghai Municipal Government Office according to COOConnect

News China Offshore News states that Hong Kong is to going to perform tax reform as a special administration region of

China This will create more benefits for private offshore equity funds on tax exemption aspect About 80 hedge funds are

not domiciled in Hong Kong currently According to Hong Kong Securities and Futures Commission between 2010 and

2012 SFC-Licensed hedge fund managers increased by 26 and AUM expended by 38 33 of them apply traditional

longshort strategy while 31 of them apply multi-strategy 65 of AUM is invested in Asia Pacific markets

Summary

Generally speaking hedge fund industry is vary depends on difference market movements The key point is how risk-loving

you are or how risk-averse you are Fee structure and fund manager picking are the core considerations for investors We

canrsquot predict future and no one can beat the market forever What we can do is to follow our strategies and make the most

reasonable decisions Good hedge funds are special market participants in the market for small group of wealthy and

extremely intelligent people If you can find them at the right time they will definitely offer you exciting returns Is has been

existed for about 90 years original from US and it will expand into China and other emerging markets at a larger degree in

future China mainland Shanghai and Hong Kongrsquos hedge fund development has a long way to go due to regulations

market conditions and customer preference The problem is not about investorsrsquo wealth and hedge fundrsquos ability it is about

how to balance all market participants for mutual benefits under a reasonable agreement

Appendix

Hedge Fund History Time Line

1920s 1st hedge fund Graham-Newman Partnership by Benjamin Graham and Jerry Newman

1949 ldquoHedge Fundrdquo named by financial journalist Alfred W Jones

1968 Hedge funds numbers reached 200

1969- 1970 1st fund of funds many longshort funds closed because of recession

1973- 1974 Many longshort funds closed because of stock market crash

1990s More hedge funds are created because of stock market recovery

2000- 2007 Expended to credit arbitrage distressed debt fixed income quantitative amp multi-strategy

2003 The 1st Qualified Foreign Institutional Investor Regime is granted in China

2004 Zhao Danyang established Sunshine Fund in mainland China which is similar to hedge funds

2008 AUM decreased for financial crisis

2009 Hedge fund AUM accounted for 11 capital of institutions

2010 Investors and institutions required larger transparency

US amp European regulations required more disclosure on valuation methods positions and leverage exposure

2011

Hedge Fund Manager CompensationTop No1 Manager

Average Top 25th Managers

Top 10th Manager

Top 30th Manager

$3000M $576M $210M $80M

Compensation Comparison CEO CIO ProfessionalsMean Compensation $1037K $1040K $691KMedian Compensation $600K $300K $312K

2011 Location Registered For Tax Consideration

Cayman Islands 34

US 24

Others 37

Luxemburg 10

Ireland 7

British Virgin Islands 6

Bermuda 3

Onshore 50

Offshore 50

2012 Sunshine Fund reached $22 Billions AUM (3 of Chine Trust Funds)

Hong Kong hedge fund AUM reached $87 Billions

2012 Percentage of People who work in Hedge Fund

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

Hedge Funds in China

According to Lehman Lee amp Xu Law Office hedge fund is not recognized officially for almost a decade in Mainland of

China by November 2012 under the Securities Law of Peoplersquos Republic of China Sunshine Fund a closed- end fund is a

representation of Chinese regulated ldquohedge fundsrdquo with absolute return strategy and short selling limitation It has higher

return and fewer restrictions on asset allocation compared to mutual funds and it has more transparency compared to private

offered funds According to Bloomberg Zhao Danyang established this fund in February 2004 The fundrsquos AUM had

reached $22 Billion by the time of 2nd Feb 2012 and it is only 3 of the total AUM of trust funds in China Sunshine Fund

charges similar fees as hedge fund to high-net-worth clients in China These millionaires own $27 Trillion wealth of Chinese

capital which is 127 times of 2012 global hedge fund AUM They are willing to pay higher fees for Sunshine Funds for

avoiding poor performance of stock markets Generally speaking rich Chinese have no much knowledge about hedge funds

and they always like to invest in real assets

Clifford Change Publications amp News claims that privately offered Chinese National Peoplersquos Congress released funds

provisions in July 2012 and this indicates the potential development opportunity of Chinese hedge fund In 1st June 2013

hedge funds in mainland China is recognized under the adjustment of Securities Investment Funds Law according to

Risknet Even though this is huge change of fund industry the short selling strategy still need time to be approved by

regulators Average knowledge of Chinese investors have not enough knowledge about hedge fund and it takes time for

mainland hedge fund development For hedge fund industry in Shanghai of China qualified Chinese investors may allowed

to invest in international hedge funds due to the effort of Shanghai Municipal Government Office according to COOConnect

News China Offshore News states that Hong Kong is to going to perform tax reform as a special administration region of

China This will create more benefits for private offshore equity funds on tax exemption aspect About 80 hedge funds are

not domiciled in Hong Kong currently According to Hong Kong Securities and Futures Commission between 2010 and

2012 SFC-Licensed hedge fund managers increased by 26 and AUM expended by 38 33 of them apply traditional

longshort strategy while 31 of them apply multi-strategy 65 of AUM is invested in Asia Pacific markets

Summary

Generally speaking hedge fund industry is vary depends on difference market movements The key point is how risk-loving

you are or how risk-averse you are Fee structure and fund manager picking are the core considerations for investors We

canrsquot predict future and no one can beat the market forever What we can do is to follow our strategies and make the most

reasonable decisions Good hedge funds are special market participants in the market for small group of wealthy and

extremely intelligent people If you can find them at the right time they will definitely offer you exciting returns Is has been

existed for about 90 years original from US and it will expand into China and other emerging markets at a larger degree in

future China mainland Shanghai and Hong Kongrsquos hedge fund development has a long way to go due to regulations

market conditions and customer preference The problem is not about investorsrsquo wealth and hedge fundrsquos ability it is about

how to balance all market participants for mutual benefits under a reasonable agreement

Appendix

Hedge Fund History Time Line

1920s 1st hedge fund Graham-Newman Partnership by Benjamin Graham and Jerry Newman

1949 ldquoHedge Fundrdquo named by financial journalist Alfred W Jones

1968 Hedge funds numbers reached 200

1969- 1970 1st fund of funds many longshort funds closed because of recession

1973- 1974 Many longshort funds closed because of stock market crash

1990s More hedge funds are created because of stock market recovery

2000- 2007 Expended to credit arbitrage distressed debt fixed income quantitative amp multi-strategy

2003 The 1st Qualified Foreign Institutional Investor Regime is granted in China

2004 Zhao Danyang established Sunshine Fund in mainland China which is similar to hedge funds

2008 AUM decreased for financial crisis

2009 Hedge fund AUM accounted for 11 capital of institutions

2010 Investors and institutions required larger transparency

US amp European regulations required more disclosure on valuation methods positions and leverage exposure

2011

Hedge Fund Manager CompensationTop No1 Manager

Average Top 25th Managers

Top 10th Manager

Top 30th Manager

$3000M $576M $210M $80M

Compensation Comparison CEO CIO ProfessionalsMean Compensation $1037K $1040K $691KMedian Compensation $600K $300K $312K

2011 Location Registered For Tax Consideration

Cayman Islands 34

US 24

Others 37

Luxemburg 10

Ireland 7

British Virgin Islands 6

Bermuda 3

Onshore 50

Offshore 50

2012 Sunshine Fund reached $22 Billions AUM (3 of Chine Trust Funds)

Hong Kong hedge fund AUM reached $87 Billions

2012 Percentage of People who work in Hedge Fund

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

market conditions and customer preference The problem is not about investorsrsquo wealth and hedge fundrsquos ability it is about

how to balance all market participants for mutual benefits under a reasonable agreement

Appendix

Hedge Fund History Time Line

1920s 1st hedge fund Graham-Newman Partnership by Benjamin Graham and Jerry Newman

1949 ldquoHedge Fundrdquo named by financial journalist Alfred W Jones

1968 Hedge funds numbers reached 200

1969- 1970 1st fund of funds many longshort funds closed because of recession

1973- 1974 Many longshort funds closed because of stock market crash

1990s More hedge funds are created because of stock market recovery

2000- 2007 Expended to credit arbitrage distressed debt fixed income quantitative amp multi-strategy

2003 The 1st Qualified Foreign Institutional Investor Regime is granted in China

2004 Zhao Danyang established Sunshine Fund in mainland China which is similar to hedge funds

2008 AUM decreased for financial crisis

2009 Hedge fund AUM accounted for 11 capital of institutions

2010 Investors and institutions required larger transparency

US amp European regulations required more disclosure on valuation methods positions and leverage exposure

2011

Hedge Fund Manager CompensationTop No1 Manager

Average Top 25th Managers

Top 10th Manager

Top 30th Manager

$3000M $576M $210M $80M

Compensation Comparison CEO CIO ProfessionalsMean Compensation $1037K $1040K $691KMedian Compensation $600K $300K $312K

2011 Location Registered For Tax Consideration

Cayman Islands 34

US 24

Others 37

Luxemburg 10

Ireland 7

British Virgin Islands 6

Bermuda 3

Onshore 50

Offshore 50

2012 Sunshine Fund reached $22 Billions AUM (3 of Chine Trust Funds)

Hong Kong hedge fund AUM reached $87 Billions

2012 Percentage of People who work in Hedge Fund

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

Compensation Comparison CEO CIO ProfessionalsMean Compensation $1037K $1040K $691KMedian Compensation $600K $300K $312K

2011 Location Registered For Tax Consideration

Cayman Islands 34

US 24

Others 37

Luxemburg 10

Ireland 7

British Virgin Islands 6

Bermuda 3

Onshore 50

Offshore 50

2012 Sunshine Fund reached $22 Billions AUM (3 of Chine Trust Funds)

Hong Kong hedge fund AUM reached $87 Billions

2012 Percentage of People who work in Hedge Fund

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

IndustryForbes Worlds Billionaires List 294Sunday Timess UK Rich List 540

Global Asset Under Management2007 $193T2011 $200T (61 Institutional 67 US)2012 $213T (Record High 79 of Chinese Millionairersquos Wealth)

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

The following 2 charts are for HK hedge funds

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

2013

China began recognizing hedge fund on Jun 1st but short selling is still prohibited

158 Qualified Foreign Institutional Investors Regimes were approved in China

Hong Kong tax reform will attract more offshore hedge fund investments

Shanghai is trying to approve Chinese investors to invest in hedge funds

2013 Hedge Fund Managers By Location

North America 62

Europe 23

Asia-Pacific 12

Rest of World 4

2013 Hedge Fund Manager AUM by Country

US 1575B

UK 436B

Australia 47B

Hong Kong 35B

Sweden 32B

Canada 27B

Switzerland 20B

France 20B

Singapore 18B

Japan 15B

2013 March Stas By Strategy AUM

Numbers of Funds YTD Leverage Ratios

Convert Arbitrage 280 250 340 358CTAManaged Futures 1250 1270 220 000Dedicated Short Bias 000 010 -770 203

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

Distressed 140 130 510 131Emerging Markets 430 640 300 140Equity LongShort 1780 3230 600 180Equity Market Neutral 290 540 290 448Event Driven 720 560 290 211Fix Income Arbitrage 1430 1010 490 231Global Macro 2450 1650 270 391Multi-Strategy 1240 700 400 329

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

Reference

Almasri Anas ldquoNew HK Tax Exemptions to Boost Hedge Funds Industryrdquo China Offshore 26 Jun 2013 lt

httpwww

chinaoffshorecomhknew-hk-tax-exemptions-to-boost-hedge-funds-industryhtml gt

BlackRock Capitalizing on Market Inefficiencies in Global Stock Markets Mar 2013

lthttpswww2blackrockcomusfinancial-professionalstoolsalternative-investments-education-centercapitalizing-

on-market-inefficiencies-in-global-stock-markets gt

Citi Prime Finance ldquoHedge Fund Industry Snapshotrdquo Citi Group- Prime Finance- Market Commentary Mar 2013

Clifford Change Publications amp News lthttpwwwcliffordchancecompublicationviewspublications201210

hedge_funds_in_chinaanoverviewofthelawanhtmlgt

COOConnect ldquoChinese Investment in Hedge Funds is a Distant Prospectrdquo 15 Jul 2013

lthttpcooconnectcomnewschinese-investment-hedge-funds-distant-prospecgt

Dickinson Clare China Introduces Registration for Hedge Funds Risknet 3 Mar 2013 lt httpwwwrisknet

hedge-funds-reviewnews2253614china-introduces-registration-for-hedge-fundsgt

Hu Bei ldquoChinarsquos lsquoSunshinersquo Trusts Avoid Global Hedge-Fund Malaise to Triple Assetsrdquo Bloomberg 6 Fed

2012 lthttpwwwbloombergcomnews2012-02-06china-s-sunshine-trusts-miss-hedge-fund-slump-as-

assets-triplehtmlgt

Preqin Alternative Assets Intelligent Data ldquo2013 Preqin Global Hedge Fund Report- Sample Pagesrdquo

wwwpreqincom 2013

Securities and Futures Commission ldquoReport of the Survey on Hedge Fund Activities of SFC-Licensed

ManagersAdvisorsrdquo Mar 2013

White Ying amp Ge Yin Hedge Funds in China An Overview of the Law and Regulations 2 Nov 2012

Wikipedia Hedge Fund 22 Jul 2013 lthttpenwikipediaorgwikiHedge_fundgt

Lehman Lee amp Xu Law Office Hedge Fund in China Nov 2012 lt httpwwwlehmanlawcomresource-

centrefaqsfinancial-services-and-regulationhedge-funds-in-china-november-2012htmlgt