Early Insights into HF Industry’s August Performance

Stockholm (HedgeNordic) – Hedge fund performance was mixed across strategies in August according to Man FRM’s Early View publication for the month of August, which provides commentary on last month’s market activity and reveals early insights into the performance of hedge funds.

Equity long/short managers posted mixed returns depending on regional and sector exposure, with Pan-Asian managers as a group having suffered a difficult month as volatility returned to the Chinese stock market on fears of China’s need for deleveraging and concerns about the plunge in Turkey’s lira leading to fire sales of emerging market assets. Global macro managers also posted mixed performance last month, with the managers having more constructive positioning in emerging markets underperforming due to pressure on emerging markets risk assets.

Managed futures managers, often called commodity-trading advisers (CTAs) after their U.S. regulatory label, had a positive month on aggregate. Exposure to equities, commodities, and foreign exchange contributed to the performance of CTAs, whereas fixed-income exposure was a detractor to performance. Almost all main positions held by CTA managers within commodities contributed to performance, a rare occurrence in a sector with low average correlations between sub-sectors.

To read Man FRM’s Early View for August 2018, click the document below:

Picture © Ralf-Kleemann—shutterstock


About Author

Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index (NHX), as well as being a novice columnist covering the Nordic hedge fund industry for HedgeNordic. Prior to joining HedgeNordic, Eugeniu had served as a columnist for a U.S. journal covering insider trading activity, activist campaigns and hedge fund moves. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018.

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