Hennessee: Hedge Funds Lose 0.50% In August

Sep 13 2013 | 8:56am ET

The Hennessee Hedge Fund Index lost 0.50% in August, putting its year-to-date gains at 6.45%.

Equity long/short were down 0.55% (up 10.56% YTD), arbitrage/event-driven funds were down 0.20%  (up 5.54% YTD), global/macro funds were down 0.64% (up 1.50% YTD) and fixed-income funds were down 0.20% on the month (up 2.63% YTD).

The bright spots, strategy-wise, were short-biased funds, up 1.86%; convertible arbitrage, up 1.42% in August; technology funds, up 0.94%; healthcare and biotech, up 0.40%; high-yield funds, up 0.05%; and opportunistic funds, up 0.04%.

In regional terms, Asia-Pacific funds were down 1.29% on the month (up 0.84% YTD), Latin American  funds were down 1.24% on the month (down 5.31% YTD) and Europe funds were down 0.96% (but still up 8.64% YTD).

“In one of the most volatile months since May of 2012, hedge funds did what they do best, capital preservation,” said Charles Gradante, co-founder of Hennessee Group, in a statement. “Several factors, such as whispers that the Fed may taper its monthly bond purchases, the continued steepening of the yield curve, and possible U.S. involvement in the Middle East, led to a rout in equities during August.  Nonetheless, hedge funds trail equities as ‘don’t fight the Fed’, rather than valuation, rules this market.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...