Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index (“Broad Index”) will post positive performance of 0.22% in August (based on 70% of assets in the index reporting).
Key highlights for the month include:
- Hedge funds sustained moderate gains in August. The Dow Jones Credit Suisse Hedge Fund Index was up 0.22%, bringing year-to-date performance to 2.46%. The industry outperformed global equity markets, as represented by the Dow Jones Global Index, which fell 3.62% in August and is down 6.08% year-to-date.
- Managed Futures hedge funds posted some of the highest performance in August, finishing up 4.96% for the month. Trend followers posted gains from long fixed income positions in both short term interest rates and bonds. High frequency managers also ended the month up as models were able to capture the fixed income rally acceleration and the fall in commodities such as natural gas.
- Global Macro hedge fund managers were among the top performers this month, finishing up 2.57% as managers capitalized on long interest rate and short Euro positions. Equities exposure continued to represent a small portion of overall portfolio risk as managers attempted to avoid the negative effects of recent equity market volatility.
- Long/Short Equity hedge funds experienced an overall negative month, losing 1.39% as directional net-long managers were unable to find profitable positions amid equity market sell-offs.