Barclay Hedge Fund Index Drops 1.41%
FAIRFIELD, Iowa, September 13, 2007– Hedge funds lost 1.41% in August, according to flash estimates from the Barclay Hedge Fund Index. August’s negative return ended a run of 13 straight months of hedge fund gains.
“As banks reduced credit lines in a knee-jerk response to problems that originated in the sub-prime sector, buyers stepped back and prices dropped," says Sol Waksman, founder and president of Barclay Hedge.
“This forced the delevering of portfolios, which had significant repercussions for a broad swath of hedge funds.”
“Seventy-four percent of the more than 2,600 hedge funds that have so far reported an August return have reported a loss,” says Waksman.
Overall, 14 of Barclay’s 18 hedge fund indexes lost ground in August. The Pacific Rim Equities Index dropped 3.36%, Emerging Markets fell 2.79%, European Equities lost 1.76%, Convertible Arbitrage was down 1.77%, and Equity Market Neutral lost 1.69%.
The Barclay Fund of Funds Index was down 2.16% in August.
“Although the damage was widespread, it most cases it was contained.” says Waksman. “A few sectors were even able to record profits in spite of the problems.”
Barclay’s Technology Index gained 2.02% in August, Healthcare and Biotechnology was up 1.85%, and Equity Short Bias rose 0.62%.
“Year to date, the Barclay Hedge Fund Index has gained 6.32%,” says Waksman. “During the same time period, the S&P 500 Total Return Index has gained 5.20%.”
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Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For more commentary or background, call 641-472-3456 or email sol@barclayhedge.com.
Barclay Hedge, founded in 1985, actively tracks more than 6,400 hedge funds and managed futures programs. Barclay has created and regularly updates 18 proprietary hedge fund indexes and eight managed futures indexes.
Institutional investors, brokerage firms and private banks worldwide utilize Barclay’s data as performance benchmarks for the hedge fund and managed futures industries.