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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat