Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

83% of hedge funds report losses in August, Barclay Hedge Fund Index down 3.42% (-2.50% YTD)

Monday, September 19, 2011
Opalesque Industry Update – Most hedge fund strategies experienced widespread and significant losses in August, contributing to a 3.42% fall in the Barclay Hedge Fund Index compiled by BarclayHedge. Year-to-date, the Index is down 2.50%.

“In what has been the worst month since Lehman’s failure in September 2008 when hedge funds dropped 6.99 percent, more than 83 percent of the 3,120 funds that have so far provided us with an August return have reported a loss,” says Sol Waksman, founder and President of BarclayHedge.

“The Barclay Hedge Fund Index is now in negative territory for the first time in 2011.”

All but one of Barclay’s 18 hedge fund indices had losses in August. The Equity Long Bias Index dropped 5.42%, Healthcare & Biotechnology fell 5.20%, European Equities were down 4.92%, Emerging Markets lost 4.85%, and the Distressed Securities Index was down 4.05%.

“Markets panicked,” says Waksman. “The threat of a banking system crisis triggered by a sovereign debt default coupled with a lack of political leadership and a weakening economic outlook drove investors to seek shelter from the storm.”

The one strategy that proved profitable was the Barclay Equity Short Bias Index, which soared 7.25%. Equity Short Bias is now up 6.07% through August.

“After eight months of difficult trading conditions, hedge fund managers trading the short side of equity markets have made a strong comeback over the past four months,” says Waksman.

“Short sellers had their largest one-month gain since October 2008, when stocks plummeted and Equity Short Bias funds gained 12.27 percent.”

The Barclay Fund of Funds Index lost 2.44% in August, and is down 2.86% year-to-date.

(press release)

Performance tables: www.barclayhedge.com


BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven