Here’s a big whoopee: Hedge funds were down only 2.45% in August compared to a drop of 6.26% for the S&P 500. Of course, most broad stock market investors weren’t paying huge upfront fees.
Hedgies took smaller losses than the MSCI emerging markets index. In August the Barclay EM index fell 5.39% vs 9.04% for the MSCI EM index. In the past three months, the MSCI EM index tumbled an impressive 17.55% vs 10.46% for the funds in the Barclay universe.
The Barclay Hedge Fund Index compiled by BarclayHedge is hanging on by its nails to a gain for the year, up 0.23%. Here’s what the data collector had to say:
“A surprise currency devaluation by the People’s Bank of China on August 11 was interpreted by investors as an indication of a weakening economy, and sparked a global sell-off of risk assets,” says Sol Waksman, founder and president of BarclayHedge.
Fifteen of Barclay’s 18 hedge fund indices had losses in August. The Emerging Markets Index dropped 5.39%, its largest loss since May of 2012 when it dropped 5.39%. Emerging Markets have fallen 10.46% in the past three months.
“Emerging markets were hit especially hard as concerns of a global slowdown provoked fears of contagion and triggered sell-offs in commodities as well as Asian currencies, credits, and equities,” says Waksman.
Healthcare & Biotechnology lost 4.38% in August, Distressed Securities fell 4.28%, and the Equity Long Bias Index was down 3.37%.
The Equity Short Bias Index was the big winner in August, with an 8.75% gain. Equity Market Neutral was up 0.42%, and Fixed Income Arbitrage added 0.12%.
At the end of August, the Healthcare & Biotechnology Index is up 9.96% for the year, Pacific Rim Equities have gained 5.19%, Merger Arbitrage is up 4.74%, and European Equites have gained 4.39%.
The Distressed Securities Index has lost 5.63% year to date, Emerging Markets are down 3.15%. and the Event Driven Index has lost 0.53%.
The Barclay Fund of Funds Index lost 2.10% in August, but is still up 0.92% in 2015.
Photo: SteFou