Hedge Funds Up 0.38%, Paced By Macro, Relative Value

Sep 13 2010 | 12:19pm ET

Hedge funds lost momentum in August, posting small gains after July’s strong returns.

The average hedge fund rose 0.38% last month, according to the HFRI Fund Weighted Composite Index. The index is now up 1.65% on the year.

Short-bias funds did especially well on the month, adding 3% amidst a market downturn. Short funds remain down 4.76% on the year.

Macro, relative value and emerging markets were the only major strategies tracked by the Hedge Fund Research benchmarks to record gains in August. The former rose 2.16% (1.02% year-to-date)—with systematic diversified funds enjoying the strongest month of any strategy or substrategy with a 3.65% returns (1.81% YTD). Relative value funds added 0.81% (6.44% YTD), paced by fixed-income asset-backed (1.68% in August, 9.93% YTD), fixed-income convertible arbitrage (1.05%, 6.18% YTD) and fixed-income corporate (0.8%, 7.14% YTD).

Emerging markets funds were just barely in the black last month, despite the fact that three of the four regions tracked by the HFRI indices were in positive ground. The Emerging Markets (Total) Index inched up 0.01% on the month (1.76% YTD). Latin America funds were the strongest performer, rising 0.58% (1.54% YTD), followed by global funds (0.19%, 3.34% YTD) and Asia ex-Japan funds (0.13%, down 0.49% YTD). Only Russia and Eastern European funds suffered, dropping 0.95% (up 4.04% YTD).

Equity hedge funds lost an average of 0.92% in August (down 0.71% YTD). Quantitative directional funds were hit hardest, losing 1.28% (down 1.05% YTD), while energy and basic materials funds lost 0.7% (down 3.56% YTD). Equity market-neutral funds lost 0.57% on the month (0.39% YTD).

Event-driven funds were down marginally, losing 0.07% in August (up 4.53% YTD). Distressed and private issue funds were the culprits, shedding 0.39% (up 5.09% YTD) and 0.16% (up 8.29% YTD), respectively, while merger arbitrage funds rose an average of 0.45% (2.54% YTD).

Funds of hedge funds were up 0.01% in August, but are down 0.42% on the year.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.