Morningstar: Hedge Funds Up Marginally In August

Sep 27 2010 | 2:30pm ET

With September drawing to a close, Morningstar joined the chorus of hedge fund index publishers pronouncing August something of a bust.

The Morningstar 1000 Hedge Fund Index added an anemic 0.1% last month, according to a preliminary report. But it could have been worse: the broader markets took a steep dive in August.

“Riskier assets such as equities have moved in concert either up or down over the last several months, a trying environment for many hedge fund strategies,” Morningstar’s Nadia Papagiannis said. “But hedge funds effectively preserved capital in August.”

Not all hedge funds, mind you: Stock hedge funds dropped 2.4% on the month—itself something a victory, given the drop in stocks last month, but a drop all the same.

On the other hand, global trend-following hedge funds jumped some 3.5% on the month. Debt funds added 1.3%, while both convertible and merger arbitrage funds rose 1% in August.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of