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.
- 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.