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Hedge Funds Made Money For Sixth Straight Month In August

Tom Burroughes

15 September 2016

Hedge fund returns across all strategies were not as strong in August as in July, at 0.97 per cent compared to 2.23 per cent, while year-to-date performance stood at 4.67 per cent, according to , the research firm.

The gain in August is the sixth consecutive month of positive performance for hedge funds, the longest period of monthly gains since the sector clocked up 12 straight months of gains in June 2012 to May 2013, the report said.

Hedge funds, which at times have chalked up relatively modest returns in recent times, have seen their typical 2 per cent/20 per cent management fee/performance fee levels come under pressue.

The Preqin figures may, however, put a bit of a bounce into the industry overall, despite some differences; all regions showed positive returns in August, albeit with wide variations, the figures show.

Emerging market funds generated returns of 8.44 per cent year to date, and 10.2 per cent over the past 12 months, the highest of any category. Funds in North America, with returns of 1.55 per cent, were ahead of European funds (0.36 per cent) and Asian funds (0.56 per cent) during August.

Since the start of this year, North American funds have returns of 6.27 per cent; Asian funds have returns of 1.12 per cent, while European funds have fallen 0.38 per cent.