The Credit Suisse/Tremont hedge fund index fell in August 2008, according to Oliver Schupp, president of Credit Suisse Index.

Mr Schupp said: “The index will finish down 1.47 per cent in August. Dedicated short bias managers shorting financials were hit especially hard throughout the month. While all ten sectors posted negative returns for the month, total returns were down less than the losses posted in July.”

According to the different research organisations tracking the sector, hedge funds on average fell in August, continuing what has so far been a negative year for the $2 trillion hedge fund industry. However, hedge funds have not fallen as sharply, on average, as stock markets as a whole.