The degree to which the US sub-prime meltdown has impacted hedge funds has been revealed in the latest Credit Suisse/Tremont Hedge Fund Index, which was flat in July.
However, the index data reveals that the impacts have certainly not been all negative for hedge funds, with the analysis pointing out that in the face of the factors flowing from the slow-down in equity markets, five of the 10 hedge fund sectors ended July in positive territory.
It said that the Dedicated Short Bias sector in particular had experienced positive performance on the back of falling equity markets.
The analysis said that in the face of the slowdown in equity markets performance, US Treasury bonds had rallied as investors sought more stable investments, while liquidity from overseas and the fact inflation remained somewhat contained prevented further downward pressure during this turbulent time.
