September 13, 2019
The hedge fund industry posted negative returns in August 2019, dropping 0.78%, according to the Barclay Hedge Fund Index. Though down during the month, hedge funds, overall, remained in positive territory for 2019, gaining 6.9% through Aug. 31. By comparison, the S&P Total Return Index was down 1.58% in August, though returned 18.35% on the year, according to BarclayHedge, a division of Backstop Solutions.
According to BarclayHedge’s Sol Waksman, the usual suspects impacted hedge funds — including the trade war, ongoing Brexit uncertainty and recession fears. “The U.S.-China trade war continued to pressure emerging markets, and a strengthening U.S. dollar increased energy costs and the costs of servicing debt denominated in USD,” Waksman added.
Added to the mix were shrinking economies in Germany and the United Kingdom, and a slowdown in manufacturing in the United States and China. All of this led to “August investment results that many might prefer to forget,” Waksman observed.
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