Hedge Funds Off 1.13% In August

Sep 10 2013 | 10:10am ET

Unless you were involved in some sort of arbitrage last month, chances are you suffered losses, according to Lyxor Asset Management.

The Lyxor Hedge Fund Index fell 1.13% last month, cutting its year-to-date returns to 2.02%. Ten of the 13 strategies tracked by Lyxor also lost ground—the only exceptions being long/short credit arbitrage (up 0.51%), convertible arbitrage (up 0.26%) and merger arbitrage (up 0.04%).

On the other side of the ledger, long-term commodity-trading advisers lost 3.99% on the month. Long/short equity variable bias funds fell 1.99%, short-term CTAs 1.34%, equity long-bias funds 1.02% and long/short equity neutral bias 0.95%. Global macro shed 0.66% and special situations 0.26%.

"The rapidly-shifting macro environment in the fall should provide an opportunity for hedge funds to monetize strong views and generate alpha," a hopeful Rob Koyfman, senior strategist at Lyxor, said.


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