Hedge fund index returns were negative in August, a result of market turmoil in the first third of the month, sources said. Preliminary returns of major hedge fund indexes for the month were: Hennessee Hedge Fund index, -0.72%; HFRI Fund Weighted Composite index, -1.31%; Greenwich Global Hedge Fund index, -1.38%; RBC Hedge 250 index, -1.7%; and Eurekahedge Hedge Fund index, -1.82%.
Hedge fund-of-funds returns in August badly trailed returns of single-manager hedge funds. The HFRI Fund of Funds Composite index came in at -2.13% for the month, and the Eurekahedge Fund of Funds index, -2.56%.
Most hedge fund index providers reported negative or flat returns at best in August for all style indexes. In sharp contrast, August returns of major market indexes were Russell 2000, 2.27%; S&P 500, 1.29%; and the Lehman Brothers Intermediate Government Corporate Bond, 1.21%.
Year-to-date returns as of Aug. 31 were positive. The Hennessee Hedge Fund index returned 8.14%; Eurekahedge Hedge Fund index, 7.89%; Greenwich Global Hedge Fund index, 6.63%; HFRI Fund Weighted Composite index, 6.2%; and RBC Hedge 250 index, 4.97%. Major market index year-to-date returns trailed hedge fund returns: the S&P 500 returned, 3.95%; Lehman Brothers Intermediate Government Corporate Bond, 3.65%; and Russell 2000, 1.43%.