Hedge funds gained 0.42 per cent in August according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 3.26 per cent increase in the S&P 500 Total Return Index.
Year to date, the Barclay Hedge Fund Index is up 1.55 per cent, while the S&P has gained 9.94 per cent.
“New all-time highs for the S&P 500 and Nasdaq coupled with a rally in US Treasuries helped set the stage for another profitable month for hedge funds,” says Sol Waksman, founder and president of BarclayHedge.
Overall, 15 of Barclay’s 17 hedge fund indices gained ground in August, while two had losses.
The Healthcare & Biotechnology Index was up 5.21 per cent in August, and now has five consecutive months of gains. Distressed Securities were up 1.88 per cent, Equity Long Bias gained 1.40 per cent, Equity Market Neutral was up 0.61 per cent, and the Equity Long/Short Index added 0.48 per cent.
In the loss column, Emerging Markets were down 2.12 per cent and European Equities gave up 0.30 per cent.
“Monetary tightening in the US, trade war worries, and an overabundance of USD denominated debt have wreaked havoc on emerging market currencies,” says Waksman. “Contagion concerns are in the air.”
At the end of August, 13 hedge fund indices had positive returns for the year, while four have lost ground. The Healthcare & Biotechnology Index has outpaced all other hedge fund indices with a strong 17.42 per cent return. The Technology Index has gained 10.06 per cent, Distressed Securities are up 8.96 per cent, Equity Long Bias has gained 3.69 per cent, and European Equities have a 3.04 per cent return.
The Emerging Markets Index now has a loss of 6.29 per cent for the year, Pacific Rim Equities are down 2.36 per cent, and the Global Macro Index has slipped 0.73 per cent. The Barclay Fund of Funds Index was up 0.26 per cent in August, and has gained 0.88 per cent in 2018.
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