•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Ruth Forssman From Precy Dumlao, Opalesque Asia:

Ruth Forssman of Peregrine Securities has reported that Peregrine’s South African equity hedge funds returned-0.06 % (before fees) in August (+6.72% YTD) in an "exceptionally volatile month," that took its toll on fund managers.

In its monthly report to investors titled, "Hedge Funds: The wrong kind of volatility," Forssman said "Hedge funds globally went into August with a fairly bullish positioning. That was based on fund managers’ descriptions of their positions, but it has been confirmed by subsequent data. It occurred in the aftermath of the last-minute resolution of the US debt ceiling crisis, rumors of additional quantitative easing in the pipeline, and significant action in Europe to deal with contagion threats.

"That position, however, proved spectacularly wrong as the market went into free fall following the downgrading of US debt, despite that occurrence having been widely signalled to the market . It’s clear in hindsight that while the downgrade may have been the immediate trigger, the real driver was the sudden souring of US growth expectations, combined with the notion that the debt ceiling deal left the US government with at least one hand tied behind its back in attempting to stimulate growth.

However, Forssman indicated some areas of optimism as there are still a few short months until the end of the year as well as a num......................

To view our full article Click here