Hedge funds wobble in August turbulence

Fri Sep 21, 2007



August caught many funds off guard as volatility struck and funds begun to delever. Only a handful of strategies tracked by Absolute Return managed to post positive returns, according to preliminary results. The Absolute Return Composite Index fell an estimated 0.84%, its second consecutive monthly decline, finishing up 5.12% for the year so far.

After a slight dip in performance in July, the Absolute Return Mortgage-Backed Securities Index was back on track and also the strongest performing strategy for the month, up 0.81%. The Technology and Arbitrage indexes also rose, up 0.80% and 0.47% for the month, respectively.

Market volatility was also felt in Latin America as both the LatAm Equity and LatAm Debt indexes returned -1.99% and -1.41%, respectively. Global Equities also suffered, with the Absolute Return Global Equity Index dropping 1.60%. Managed Futures and Commodities funds took the worst hits. Both indices plummeted,...

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