August Hedge Fund Losses Broad-Based

Sep 17 2007 | 1:53pm ET

Hedge fund losses in August weren’t only substantial; they were remarkably broad-based, according to the latest Credit Suisse/Tremont Hedge Fund Index report.

“In August, the subprime mortgage contagion led to a widespread sell-off that swept equities, commodities and low-grade credit markets,” Oliver Schupp, president of the Credit Suisse Index Co., said. “The sell-off was exacerbated by the highest jump in the overnight loan rate in over six years and banks and brokerages reported declining values in credit investments.”

The overall Credit Suisse/Tremont Hedge Fund Index fell 1.53% in August, following a flat July, but remains up 7.03% year-to-date. By contrast, the Standard & Poor’s 500 rose 1.5% on the month, but is up only 5.2% in 2007. The CS/Tremont Investable Hedge Fund Index declined 1.89% last month (up 3.51% YTD).

Every single one of CS/Tremont’s subindices and sector invest indices were in the red last month. The biggest loser by far was managed futures funds, which suffered through its second consecutive terrible month falling 4.61% in August, and are now down 2.48% year-to-date. The strategy also suffered a hard month on the investable side, down 4.18% (down 2.26% YTD). Other big losers include emerging markets (down 2.37% in August, up 9.42% YTD) and event-driven multi-strategy (down 2.03% in August, up 12.12% YTD).

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…