So far, 2003 has been something of a disappoint-ment for many long/short managers who have lagged behind the major benchmarks. But, August was a particularly bright period for many as U.S. equities surged ahead again. Short-biased managers saw returns sink even further, many down 20% or more for the year. The flipside of this was that long/short managers who were typically long-biased, did better.
Outperforming many in August was the Pequot International Fund, which gained 3.3% in Class A shares. For the year, the Pequot strategy was up 10.2% at the end of the month.
Mark Kingdon's M Kingdon