Sunday, 21 September 2014
Last updated 2 days ago
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).
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.