Credit Suisse: Hedge Funds Down More Than 1% In August

Sep 2 2010 | 11:21am ET

Hedge funds were burned by plummeting equities markets in August, according to one industry benchmark.

Credit Suisse’s Liquid Alternative Beta Index dropped 1.14% last month, leaving it up 1.81% on the year. But that wasn’t nearly as bad as the losses posted by the broader markets, with the Standard & Poor’s 500 Index dropping 4.7%.

“While the Credit Suisse Liquid Alternative Beta Index was down 1.14% in August, it outperformed the MSCI World, which fell 4.03%,” Jordan Drachman, head of alternative beta strategies research, said. “Despite the month's negative returns, LAB remains largely positive year-to-date with three of the four LAB sector indices posting gains.”

In August, however, only one posted positive gains: Global Macro, which added 0.69% on the month and is up 1.8% on the year. The other three strategy indices declined: Merger arbitrage funds fell 0.39% (up 5.57% year-to-date), event-driven funds fell 1.78% (up 4.04% YTD) and long/short funds fell 2.11% (down 0.1% YTD).


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note