Wednesday, 1 October 2014
Last updated 6 hours ago
Sep 7 2011 | 11:49am ET
Hedge funds fell almost 3% last month, leaving the average fund down almost 4% on the year with just four months to go.
The Dow Jones Credit Suisse Core Hedge Fund Index lost 2.88% in August, the Credit Suisse Index Co. said. The benchmark is now down 3.76% on the year.
That actually represents something of a turnaround: The index was down 3.66% in the first 10 days of August.
"Despite challenging conditions throughout the month, hedge funds appeared to be effective in providing a degree of capital preservation when compared to global equity markets, which fell 7.69% as represented by the Dow Jones Global Index," CS Index Co. President Oliver Schupp said. "This outperformance is largely due to the strategic de-risking of many managers who began reducing net exposure in the weeks, or even months, preceding the correction."
Event-driven funds were the month's biggest loser, falling an average of 5.31% (down 8.06% year-to-date). Long/short equity funds dropped 3.56% (down 3.23% YTD), convertible arbitrage funds 3.46% (down 3.6% YTD) and emerging markets funds 3.45% (up 0.04% YTD).
Global macro funds lost an average of 1.84% on the month (down 5.95% YTD) and fixed-income arbitrage funds fell 0.66% (up 1.35% YTD).
One strategy did manage a positive return during August: managed futures, which rose 1.03%. That eliminated the strategy's year-to-date loss and left it up 0.02% on the year.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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