US - Preliminary estimates show the Average US Hedge Fund index fell -0.3% net in August, according to Nashville-based hedge fund advisory firm, Van Hedge Fund Advisors International (Van).
The major indices all posted losses in August, but theirs were far greater. The Russell 2000 dipped another -3.2%, while the Dow, the S&P 500, and the NASDAQ tumbled -5.2%, -6.3% and -10.9%, respectively. On a year-to-date basis, the Average US Hedge Fund's 2.6% net gain puts it ahead of the major indices, which are all negative through August, said Van in its monthly analysis.
The small-cap laden Russell 2000 returned -2.1%, while the Dow, the S&P 500 and the NASDAQ have fallen -6.7%, -13.4% and -26.8% respectively.
Over 95% of the funds reporting for the preliminary index outperformed the S&P 500 in August, and over 58% posted gains”, said Van.
“All in all, hedge funds are providing significant alpha over the S&P 500 and in fact, over all of the major indices.”
Nine out of the 14 primary investment strategies tracked posted gains for the preliminary index. Shortsellers proved to be the strongest performers and market neutral strategies also performed well.
So far, September's markets have simply picked up where August's left off. Long-only investors are getting little relief in the markets and the prospects for a quick recovery are slim. With their strong performance during the last 32 months, hedge funds may provide a good shelter from the storm, added Van.
Final August performance for US, offshore and global hedge funds, by strategy, will be released later this month.
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