Hedge Funds Off 0.54% In August

Sep 18 2013 | 10:40am ET

Hedge funds edged lower in August on fears about Syria and the Federal Reserve's plan for its bond-buying program.

The Barclay Hedge Fund Index dropped 0.54%, cutting its year-to-date return to 5.2%. The decline was significantly lower than that suffered by the broader markets, with the Standard & Poor's 500 Index giving back more than 3% on the month.

Short-bias funds feasted on the selloff, rising 3.04% on the month. Fixed-income arbitrage funds rose an average of 0.73%, convertible arbitrage funds 0.69% and technology funds 0.62%. None of those strategies are among BarclayHedge's best performers for the year—indeed, short-bias is far-and-away its worst performer, down 17.05% through August. Leading the pack in 2013 is healthcare and biotechnology, up 15.97%, Pacific Rim equities, up 14.35%, equity long-bias, up 11.42% and distressed securities, up 10.64%.

August's biggest losers were emerging markets (down 1.37%), global macro (down 1.27%), equity long-bias (down 0.74%) and equity long/short (down 0.59%).

"Uncertainty over the Fed's tapering timeline and possible U.S. military intervention in Syria were primary drivers of an August global equities selloff," BarclayHedge founder Sol Waksman said. "Rising U.S. interest rates raised fears of fund outflows from net debtor emerging countries that rely on foreign investment."


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note