Hedge Fund Reader : Hedge Funds show a sign of wear-out

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September 17, 2005

Hedge Funds show a sign of wear-out

These are times of distress for the hedge funds to drive up returns to their investors in this jaded market in August. CSFB/Tremont Hedge Fund Index, an index that studies funds across of 13 strategy categories out of the 412 funds. According the index hedge funds pasted and an aggregate return only 0.88 percent for August, down from the 1.92 per cent for the month of July. Whereas on year-to-date basis, hedge funds in aggregate posted returns of approximately 4.2 per cent, compared to gains made of approximately 1.36 per cent for the S&P 500. While "short bias" funds, which bet on securities that will decline, posted 2.48 per cent in returns in August, compared to 1.66 per cent negative returns in July. Emerging market funds were the most sought after since they performed better than most other strategies, with gains for August posted at 2.29 per cent in tune with the July performance figures. These funds were in positive territory because of rallying equity markets in Russia, China and Argentina. Reuters Reports:

Emerging market funds also performed better than most other strategies, with gains in August at 2.29 percent, virtually matching July performance figures. The worst performers were managed futures funds, which posted declines of 0.87 percent in August, compared to gains of 0.87 percent in July.

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September 17, 2005 in Emerging Markets, Research, Strategy | Permalink