News Digest:

Led by equity hedge and fixed income-based relative value arbitrage strategies, Hedge funds posted a gain of 0.25% for August ’24. Despite large-cap equities recording three days of steep declines at the beginning of the month, these were balanced by the end of the month thanks largely to gains driven by a combination of equity and fixed-income trading during an extremely volatile market.

According to Hedgeweek report Equity Hedge (EH) funds, which invest long and short across specialized sub-strategies, led performance gains in August, driven by healthcare and technology sub-strategies. The HFRI Equity Hedge (Total) Index advanced an estimated +0.8% for the month to bring its YTD return to +9.0%, leading all strategy indices over the first eight months of the year.

Takeaway:

Interest rate-sensitive fixed-income funds also gained an estimated 0.4% in August, reflecting a sentiment based on falling interest rates, lower inflation, and external geopolitical flux.

End Notes

Source: https://www.hedgeweek.com/hedge-funds-navigate-record-volatility-to-post-august-gains///