Thu, Sep 19, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds down 0.78% in August

Friday, September 13, 2019
Opalesque Industry Update - The hedge fund industry posted negative returns in August, dropping 0.78%, according to the Barclay Hedge Fund Index, compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P Total Return Index was down 1.58% in August.

Despite the down month, hedge funds remained in positive territory for the year, gaining 6.86% through August 31. The S&P Total Return Index returned 18.35% on the year through August.

August's hedge fund difficulties were fueled by the usual suspects: the U.S.-China trade war, ongoing no-deal Brexit uncertainty, and recession fears.

"August proved to be a particularly challenging month for investors, with stocks falling as the U.S. and China ratcheted up their tariff battle and both countries experiencing a slowdown in manufacturing," said Sol Waksman, president of BarclayHedge. "Shrinking economies in Germany and the U.K. coupled with the impact of an inverted yield curve helped to bring about August investment results that many might prefer to forget."

All but a handful of hedge fund sectors were in negative territory for the month. Sectors with positive August returns included the Global Macro Index, returning 2.19% for the month, the Distressed Securities Index, up 1.17%, the Convertible Arbitrage Index, gaining 0.64%, the Merger Arbitrage Index, posting a 0.30% August return, and the Equity Market Neutral Index, up 0.12% on the month.

Among the sectors losing ground in August were the Emerging Markets Latin America Index, down 11.80%, the Emerging Markets Global Fixed Income Index, off 8.37%, the Emerging Markets Latin American Equities Index down 3.47%, and the Emerging Markets Asian Equities Index, dropping 2.20% in August.

"The U.S.-China trade war continued to pressure emerging markets and a strengthening US dollar increased energy costs and the costs of servicing debt denominated in USD," said Waksman.

All hedge fund sectors but two remained in positive territory year-to-date through August. Only the Volatility Trading Index, down 1.33%, and the Equity Market Neutral Index, off 0.20%, were in the red for the year.

Among the leading year-to-date gainers were the Emerging Markets Eastern European Equities Index, posting a 16.99% return, the Emerging Markets Eastern Europe Index, up 16.83%, the Technology Index, with a 12.84% gain, Healthcare & Biotechnology up 11.94%, and Emerging Markets Latin American Equities with a 9.86% return year-to-date.

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. Albright Capital builds on emerging markets impact strategy, signs on to IFC principles[more]

    Bailey McCann, Opalesque New York: Albright Capital has adopted the International Finance Corporation's Operating Principles for Impact Management. The firm has also developed its own impact measurement system as part of the implementation of the principles. The IFC's principles were

  2. Investing: Hedge funds getting burned as growth stocks trounced by value, Why investors are prioritizing health care in a big way, Fannie, Freddie soar as hedge funds score wins on two fronts[more]

    Hedge funds getting burned as growth stocks trounced by value From Bloomberg: A hedge-fund favorite is rapidly losing ground in the stock market just as one of the industry's least-loved sectors picks up. Growth stocks, generally companies that are seeing rapid profit increases, have drop

  3. PE/VC: Supersized unicorn: Root Insurance leaps to $3.65bn valuation with $350m round[more]

    Root Insurance is now valued at $3.65 billion after a $350 million funding round - the largest single venture capital round ever in the state. The 3-year-old auto insurer, now the startup with the highest valuation of any in Ohio, has raised a cumulative $523 million in VC and another $100 mi

  4. Testing hedge performance when stocks crash[more]

    Bonds have historically been a reliable buffer for stock exposure. But low yields and potential reversion to a more positive stock/bond correlation would likely translate to less protection. Gold has been a solid crisis hedge but has experienced long stretches of negative inflation-adjusted returns.

  5. PE/VC: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct, Why venture capital firms need more women partners and entrepreneurs[more]

    The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct From Vox: Federal investigators are probing the conduct and practices of Mithril Capital, a venture capital firm co-founded by Peter Thiel, Recode has learned. US officials - including t