Opalesque Industry Update - The Greenwich Investable Hedge Fund Indices withstood the worst decline in equity markets thus far in 2011 with modest declines in August. The monthly and quarterly redemption Composite Indices fell by 2.32% for the month, less than half the decline of the S&P 500 Total Return Index. The Managed Futures Index was the best relative performer, declining only 40 basis points, followed by Long-Short Credit funds, which fell by 0.55%. Market Neutral strategies also emerged relatively unscathed as Arbitrage and Equity Market Neutral Indices each shed less than 1%. The Greenwich Long-Short Equity Investable Index also fell by 3.80% compared to a decline of 7.26% in the MSCI World Equity Index. |
“With the market now in a clear downtrend, we expect to see more hedge funds take a guarded, short-term approach to trading in their respective markets. Successful risk management will be the key for funds navigating through the remainder of the year. In general, we continue to expect hedge funds to post superior results to index-linked funds during this difficult period,” said Clint Binkley, Senior Vice President.