Hedge funds’ continuing struggle this year is reflected in yet another index released this week.
Just two of the six Dow Jones Hedge Fund Strategy Benchmarks were in the black in August, and one of those just barely. Merger arbitrage funds returned 1.1% last month, leaving it the only strategy in positive territory year-to-date. Event-driven funds were effectively flat, rising 0.05% to bring its year-to-date loss to 2.06%.
Equity-market neutral funds dropped 3.22% (down 2.39% year-to-date). Convertible arbitrage and distressed securities funds are down 8.44% and 7.56%, respectively, on the year, and 0.77% and 0.94%, respectively, in August.