Hedge funds return 0.78% in August as dovish Fed boosted market sentiment

Hedge fund managers ended the month of August up 0.78% on an equal-weighted basis, and up 0.25% on an asset-weighted basis.

Global markets were buoyed by a rise in investor risk appetite due to the continuation of highly accommodative monetary policies and the dovish comments made by Federal Reserve chairman Jerome Powell during the Jackson Hole symposium.

On a year-to-date basis, global hedge funds were up 8.56% over the first 8 months of 2021, recording the strongest August year-to-date return since 2009 despite the ongoing pandemic.

Returns were mostly positive across geographic mandates in August with European hedge funds in the lead with a return of 1.06% while Latin American hedge funds trailed behind their geographic peers with a return of -0.82%.

Across strategies, long short equities and distressed debt hedge funds outperformed their strategic peers with returns of 0.97% and 0.78% respectively throughout the month.

Launched in 2001, Eurekahedge has a proven track record of almost 20 years as the world’s largest independent data provider and alternative research firm specialising in global hedge fund databases and research.

The global expertise of our research team constantly adapts to industry changes and needs, allowing Eurekahedge to develop and offer a wide array of products and services coveted by institutional investors, family offices, accredited investors, qualified purchasers, financial institutions and media sources.

In addition to market-leading hedge fund databases, Eurekahedge’s other business functions include hedge fund research publications, due diligence services, investor services, analytical platforms and risk management tools.