Nearly all of the hedge fund strategy categories tracked by Dow Jones
are down this year following another rough month in August, when
two of the six strategies posted net-of-fees gains.
The only bright lights in August were the merger-arbitrage and event-driven strategies, which gained 1.10% and 0.05%, respectively.
For the year as of August, only the merger-arbitrage strategy (1.62%) has its nose above water. The rest are under water: equity driven (-2.06%); equity market neutral (-2.39%); equity long/short (-2.38%); distressed securities (-7.56%); and convertible arbitrage (-8.44%).
Still, the hedge fund indexes have held up better than most of the major indexes. As of August, the Dow Jones Wilshire 5000 index was down 10.30% and the Dow Jones Wilshire Global Index had dropped 14.75%. The Dow Jones Corporate Bond Index was up slightly at 0.38%.
But hedge funds are supposed to make money in all types of weather, so no matter how you slice it they're having a bad year.