According to an S&P news release, the August index showing came on positive returns from two of its three components – the S&P Directional/Tactical Index (1.69% in August, up from a 0.07% loss for July) and the S&P Event-Driven Index (0.59%, down in August from 0.79% in July). Year to date through August 29, Event-Driven had the strongest showing with an 11.04% increase while Directional/Tactical came up with an 8.58% advance.
The third sub-index, the S&P Arbitrage Index, lost ground in August with a -0.84% showing, down from a positive 0.28% in July. The Index turned in a 0.95% showing year to date.
The composite index performance pulled down a 6.86% showing year to date through August after July’s gain (See S&P Hedge Fund Index 0.34% Higher In July).
Comparatively, the S&P Managed Futures Index had a 1.24% increase in August after a 2.75% decline in July, and a 5.69% showing year-to-date. The Managed Futures index is designed to be an investable benchmark focusing on trading methodologies that constitute a significant portion of the managed futures investment strategies. The Index has 14 constituents, four of which are also constituents of the S&P Hedge Fund Index, which was launched in November (See S&P Introduces Hedge Fund Index ).