Opalesque Industry Update: Hedge fund managers posted positive results in August on average as the Greenwich Global Hedge Fund Index rose +0.81% for the month. Most strategies reported positive returns for August, with the exception of Managed Futures (-0.16%) and Macro (-0.25%) funds. The GGHFI’s gain of +0.81% lagged global equity returns in the S&P 500 Total Return (2.25%), and MSCI World Equity (+2.29%) equity indices. 67% of constituent funds in the GGHFI ended the month with gains.|
Global Index Strategy Highlights:
Positive expectations propelled global stock markets upward in August, driven by anticipations of additional quantitative easing in the US and promises of bond buying from Mario Draghi in the EU. On average, Long/Short Equity funds showed improved results in August (+1.29%), though they continue to trail equity markets. Value strategies once again outperformed both Opportunistic and Growth strategies with a gain of +1.53%. Short-Biased funds struggled to profit in this bullish environment, losing -5.11% during the month on average.
Event-Driven strategies were one of the best performers during the month, gaining +1.74% on average. Managers in this space also benefited from the move upward in markets and firming of sentiments.
Long-Short Credit managers continued their streak as the best performing strategy year to date. Their August return of +1.21% brings them to a YTD result of 7.59%. On a 3 year annualized basis, these funds also lead the pack, with an average return of +10.21%.
Funds focused on Managed Futures seesawed back to another negative return in August (-0.16%) after returning impressive results in July (+2.06%). After a year of uneven returns, these funds remain one of the weaker strategies, up only +1.25% YTD on average.
Regionally, funds investing in Developed Markets (+0.83%) fared similarly to those investing in Emerging Markets (+0.91%) on average in August. Managers investing in Latin America returned the strongest results on a regional basis, gaining +3.61% during the month. In the developed markets, North American focused funds led the way, gaining +1.78% on average.