Hedge Funds Minimize Losses in August
Greenwich Alternative Investments
September 9, 2011
Stamford, CT, USA, September 9, 2011 – Hedge funds as measured by the Greenwich Global Hedge Fund Index (“GGHFI”) ended the month mostly lower in August, but continued to outperform world equity markets. The GGHFI declined 2.4% compared to global equity returns in the S&P 500 Total Return (-5.43%), MSCI World Equity (-7.26%), and FTSE 100 (-7.23%) equity indices. 29% of constituent funds in the GGHFI ended the month with gains.
“Hedge funds turned in an excellent month of relative performance when compared to equity market benchmarks,” notes Clint Binkley, Senior Vice President. “Macro, Futures and Short Biased managers produced positive returns in spite of severe market declines. We continue to expect hedge funds to outperform long only strategies in this volatile market environment.”
Hedge Fund Strategy Highlights
- Directional Trading funds are the best performing group of funds in August, gaining 0.3%
- Market Neutral funds provide protection from market swings, declining only 2.9% on average for the month
- Long-Short Equity managers battle volatile markets during the month, losing 4.5%
- Short-Biased managers have their best month of the year, capitalizing on down markets to gain 9.1% in August
- Specialty Strategies group remains the best performer for the year, up 1.1%
- Developed Market funds proved to be a safer place than Emerging Market funds in August, losing only 2.1% on average compared to a loss of 5.5% for Emerging Market funds.
- The GGHFI is one of the oldest benchmarks of the hedge fund universe. Final Strategy and Regional index results for August will be available in early October, once additional funds have submitted returns. Past performance and indices construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.
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