Hedge Funds Lag Stocks In August

Sep 6 2012 | 11:48am ET

Hedge funds continue to badly trail the broader markets, failing once again in August to participate in a stock-market rally.

The average hedge fund rose 0.56% last month, the Dow Jones Credit Suisse Core Index shows. But the Standard & Poor's 500 Index rose almost 2% on the month and is up almost 12% on the year. By contrast, the Dow Jones benchmark is up just 2.02% this year, a gain recorded almost entirely in the last two months.

Returns were mixed across strategies, with long/short equity funds managing a 1.66% return in August (down 0.38% year-to-date) and event-driven hedge funds up 1.04% (up 2% YTD). Global macro hedge funds added 0.88% on the month (4.74% YTD), fixed-income arbitrage funds 0.57% (1.47% YTD) and convertible arbitrage funds 0.25% (5.58% YTD, the best of the lot).

Managed futures funds, on the other hand, took a big hit, dropping 2.01% last month (up 0.84% YTD). Emerging markets funds edged down, falling 0.15% (up 0.26% YTD).


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.