Losses continue for Hedge funds for third month in a row

On a year-to-date basis Asia ex-Japan mandated hedge funds are up 4.45% and have outperformed the MSCI AC Asia ex Japan Index by almost 12%, according to Eurekahedge.

Sep 09, 2015 03:09 IST India Infoline News Service

The market turmoil is taking its toll on hedge funds, which posted their third consecutive month of losses. The Eurekahedge Hedge Fund Index is down 1.75% in August while the MSCI World Index has lost 6.66% during the month. Yet the fact remains that hedge funds have outperformed underlying markets as represented by the MSCI World Index by 5.06% over the last three months.
 
On a year-to-date basis, hedge funds are up 1.36%, which compares with a gain of 4.07% seen over the same period last year.
 
Key takeaways for the month of August 2015:
  • Hedge funds preserved their 2015 gains and outperformed underlying markets as represented by the MSCI World Index by 5.06% over the last three months. On a year-to-date basis, hedge funds are up 1.36% while underlying markets are down by 1.90%.
  • Among developed market investment mandates, Japanese and European managers lead with year-to-date gains of 5.70% and 4.36% respectively.
  • The CBOE Eurekahedge Tail Risk Hedge Fund Index was the best performing strategic mandate in August 2015, up 4.44% during the month. 
  • North America mandated hedge funds posted their worst monthly loss since 2011, down 2.03%. On a year-to-date basis, they are up 0.31% while the S&P500 and DJIA are down 4.21% and 7.27% respectively.
  • Greater China investing hedge funds have preserved their gains from earlier during the year and are up 3.22% year-to-date, outperforming the CSI 300 Index by almost 8%. Long-only funds investing with a China mandate are down 11.67% in August while the hedged strategies declined 6.55%.
  • On a year-to-date basis Asia ex-Japan mandated hedge funds are up 4.45% and have outperformed the MSCI AC Asia ex Japan Index by almost 12%.

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