While both hedge funds and equities lost value in August, hedge funds outperformed equities by more than five percentage points. The Dow Jones Credit Suisse Hedge Fund Index fell 2.3% last month, but the Dow Jones Global Index of equities declined 7.69%.
“Although three out of 10 sectors of the Dow Jones Credit Suisse Hedge Fund Index posted positive performance in August, the index [as a whole] fell 2.3% for the month,” said Oliver Schupp, president of Credit Suisse Index Co. “Overall, the index outperformed global equities by more than five percentage points, with Dedicated Short Bias delivering the strongest performance, gaining 6.56%--as short positions across equity markets proved profitable amidst broad market downturns. Global Macro also gained 1,91%, as managers employed tactical trading strategies to navigate the high levels of volatility seen in August.”
In addition, hedge funds took in $477 billion in inflows last month, reaching a total of $1.79 trillion.
-- This article first appeared on Money Management Executive.