Performance

Equities: Long/short funds trail markets

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Long/short equity funds are reporting a mediocre rise in August, and may even now be sending gold-bound copies of Aesop's "The Tortoise & The Hare" to their patient investors.

Both U.S. and global long/short equity funds trailed the broader market indices as many funds had lowered the net exposure going into August, thereby reducing their potential upside in the market rally, which was fueled in part by the Fed's pause in raising rates and lower energy prices.

The Absolute Return U.S. Equity Index gained a median 0.82% in August. That's significantly behind the S&P 500's monthly total return of 2.38%