HEDGE FUND LAUNCHES DECLINE 36% TO $15 BILLION IN 2009

Lowest figure on record

NEW YORK, February 2, 2010 – Assets raised by hedge fund startups in 2009 fell 36%
from the previous year, marking the second year in a row that new fund assets declined
significantly, according to the biannual AR New Funds Survey, published in the February
issue of AR.

The largest new fund launches in the U.S. in 2009 amassed $14.89 billion, in contrast to
$23.17 billion for the largest new funds in 2008 and $31.5 billion in 2007.

Although 53 funds with at least $50 million in assets launched by year-end, compared
with 55 in 2008, the average size of the funds fell significantly. The number of new
funds managing more than $1 billion also decreased. Only two new funds were able to
end 2009 with $1 billion or more in assets, compared with 2008, which had five funds
managing that amount.

Soros Fund Management alums Joshua Berkowitz and Marcel Kasumovich boasted the
biggest new fund of the year with their Woodbine Capital Fund, a global macro strategy that
launched at the end of 2008 but only started taking outside capital in 2009. The fund ended
the year with $2.5 billion and is already nearing $3 billion thanks to additional in-flows at the
start of 2010.

Arvind Raghunathan’s Roc Capital Partners Fund was the second-largest launch of the
year—and the biggest that actually opened its doors in 2009. The firm’s global equity fund
launched in August and ended the year managing $1 billion.

“There is still a reluctance of investors to part with their money. Moreover, the big issues
of 2008 – transparency and liquidity – continue to be major challenges for new funds,”
said Michelle Celarier, editor of AR. “The barriers to entry are also the highest they have
ever been and the environment has been particularly challenging for capital raising.”

New strategies that are getting attention from investors include specialist and niche
equity strategies such as those focused on health care, clean technology, climate
change and alternative energy. Merger arbitrage is also attracting interest as the
number of mergers and acquisitions increase.
TOP TEN HEDGE FUND LAUNCHES 2009
FIRM NAME FUND NAME STRATEGY ASSETS 12/31/09 MANAGERS MONTH
(in $ millions) LAUNCHED
Woodbine Capital Advisors Woodbine Capital Fund Global macro 2,500 Joshua Berkowitz, January
Marcel Kasumovich
Roc Capital Management Roc Capital Partners Fund Global equity, 1,000 Arvind Raghunathan August
market neutral
Pia Capital Management Pia Macro Fund Liquid global macro 949 Christopher Pia June

LDH Energy LDH Energy Opportunities Fund Commodities 750* William Reed September

Realm Partners LLC Realm Partners Fund LP Multi-strategy/ 650 Robert Millard July
event driven
Harbinger Capital Partners Credit Distressed Blue Line Fund Distressed/credit 620 Philip Falcone April

Saba Capital Management Saba Capital Master Credit 560 Boaz Weinstein August

Plural Investments Plural Partners Master Fund L/s equity 550 Matt Grossman January

Brevan Howard Asset Brevan Howard Credit Catalyst Credit 517 David Warren June
Management

Manatuck Hill Partners Manatuck Hill Scout Fund L/s equity 400 Mark Broach July

* Estimated

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Notes for editors:

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For further information:

Michelle Celarier, Editor, AR
212-224-3021
mcelarier@absolutereturn.net
Stefan Prelog, Walek & Associates
212 590-0523
sprelog@walek.com