BarclayHedge: Hedge Funds Up 1% In August

Sep 19 2012 | 12:45pm ET

August's rising tide lifted almost all hedge fund strategies, according to BarclayHedge.

Sixteen of BarclayHedge's 18 indices were in the black last month, a month which saw the broader Barclay Hedge Fund Index rise 1.09% (4.2% year-to-date) and the Standard & Poor's 500 Index add almost 2%. Unsurprisingly, equity long-bias funds did best, nearly matching the S&P500 with a 1.95% return (5.73% YTD), followed by event-driven funds at 1.91%, distressed securities funds at 1.67% and healthcare and biotechnology 1.42% (10.76% YTD).

"Equity prices moved mostly higher in August in spite of economic data calling for a continued slowdown in growth," Sol Waksman, BarclayHedge's founder, said. "Investors appeared to be betting on further stimulus from central banks, and recent actions from the [Federal Reserve Board] and [European Central Bank] have proven them right."

The two losing strategies were Pacific Rim equities, down 0.27%, and equity short-bias, down 3.26%. The latter is also the only strategy tracked by Barclay Hedge that is down on the year—and it is down a lot, 12.42%.

"It's been a volatile year for hedge funds trading the short side of the market, with a 9.21% loss in January, a 10.04% gain in May, and a lot of chop in between those two extremes," Waksman said.

Funds of hedge funds edged up 0.67% last month, according to the Barclay Hedge index, and are up 2.42% this year.


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