Thursday, 21 August 2014
Last updated 14 hours ago
Sep 6 2011 | 4:00am ET
Hedge funds took a big hit in August, battered by tremendous market volatility and declining stocks, according to Credit Suisse's suite of hedge fund replication indices.
The average hedge fund lost 3.36% last month, the Credit Suisse Liquid Alternative Beta Index shows. The benchmark is now down 0.98% on the year.
"The [Standard & Poor's] downgrade of the U.S. credit rating caused a broad market sell-off that negatively impacted the distressed equity sector," Credit Suisse's Jordan Drachman said. That hit event-driven funds particularly hard; the Credit Suisse Event Driven Liquid Index dropped 4.62% in August, erasing its year-to-date gains and leaving it down 1.95% on the year.
Long/short equity hedge funds dropped an average of 3.68% (down 0.38% year-to-date) and global strategies funds 2.69% (down 0.64% YTD). Merger arbitrage funds lost 0.77% (up 2.89% YTD), while managed futures funds managed a 0.35% increase (down 1.99% YTD).
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note