Market neutral funds seemed positioned to do well, given the low volatility in the markets, but many have struggled, posting flat to negative returns for the month. The QLS Market Neutral strategy was down 1.20% in August, bringing its three-month total down to negative 2.18% and its year-to-date loss to 2.50%. The Alpha Equity Market Neutral Fund LP also posted a loss, with a 1.70% drop in August.
The fund is down 4.71% for the last six months, 3.00% for the last 12, and down 5.35% for the year-to-date. The Dexia Long Short Double Alpha Fund was down