Hedge Funds Beat Equity Indices in August

September 10, 2001 (PLANSPONSOR.com) - Preliminary estimates show US hedge funds fared better than most equity indices, according to Van Hedge Fund Advisors International, Inc., a global hedge fund advisory firm.

Van Hedge Fund CEO Steven A. Lonsdorf said the average US hedge fund fell -0.3% net in August. On a year-to-date basis, the average US hedge fund’s 2.6% net gain puts it firmly ahead of the major indices, which are all negative through August, he said.

In August:

  • the Russell 2000 dipped another -3.2%
  • the DJIA, the S&P 500, and the NASDAQ tumbled -5.2%, -6.3% and -10.9%, respectively

YTD, the small-cap laden Russell 2000 remains the best performer with a -2.1% return, while the Dow, the S&P 500 and the NASDAQ have fallen -6.7%, -13.4% and -26.8%, respectively, according to Lonsdorf.

Lonsdorf said hedge fund returns benefited from managers’ ability to use cash positions, short selling and options to help protect themselves against downturns.