Hedge funds have maintained their positive performance in August, with early reports indicating sector returns reached 1.1 per cent for the month, according to the Eurekahedge hedge fund report.
Distressed debt strategies recorded the best returns for the month, posting 6.23 per cent in August due to the “outstanding performance” of several emerging distressed debt managers.
All other sectors managed positive returns of between 1 per cent and 2 per cent during August. The relative value hedge fund index posted returns of 1.64 per cent, while the arbitrage hedge fund index managed gains of 1.61 per cent.
Managed futures and macro strategies have continued to underperform out of all hedge fund strategies, posting 0.5 per cent and 0.62 per cent respectively. A downturn of nearly 20 per cent in the prices of natural gas eroded gains during the month, while unsteady movement in the currency space negatively impacted the asset class.
The sector attracted net inflows of $4.5 billion in August. There have been more than 200 launches and 400 closures of hedge funds during the year.
