Equity Markets Trump Hedge Funds In August

Sep 8 2009 | 9:45am ET

The Hennessee Hedge Fund Index advanced a mere 1.85% in August (17.30% YTD), trailing other major indices.

“Hedge funds continued to lag the surging equity markets, as we would expect given their short portfolios and hedges,” said Lee Hennessee, managing principal of Hennessee Group.  “Managers have opened up their exposures to benefit from the market rally.  However, given the uncertainty around the economy, most managers are looking to generate gains due to stock selection, rather than beta exposure as there is potential for a correction.”

The S&P 500 increased 3.36% for the month (12.99% YTD), the Dow Jones Industrial Average increased 3.54% (8.20% YTD), and the NASDAQ Composite Index advanced 1.54% (27.40% YTD).  The Barclays Aggregate Bond Index advanced 1.04% (4.62% YTD). 

“There was good economic news released in August, specifically housing and manufacturing data. However, our expectations for future growth and a V-shaped recovery are tempered. Government spending continues to drive demand, while the private sector has been largely absent. This dynamic is not sustainable,” said Charles Gradante, co-founder of Hennessee Group. 

Hennessee Indices

August
YTD
Long/Short Equity
1.88%
15.27%
Arbitrage/Event Driven
2.10%
19.89%
Distressed
2.58%
24.40%
Convertible Arbitrage
2.96%
34.53%
Merger Arbitrage
1.18%
6.20%
Global/Macro
1.87%
18.19%
International
1.83%
14.51%
Macro
0.83%
9.06%

In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.