Hedge funds eke out a win in rough August

* Hedge funds hug the flat line in August

* Credit Suisse sees slightly negative returns for month

* Global macro strategies still perform well

By Emily Chasan

NEW YORK, Sept 3 (BestGrowthStock) – Most hedge funds won the
battle against struggling stock markets in August, but are
still likely to finish the year with nearly flat returns.

Hedge funds hugged the flat line last month as the equity
markets dropped, mostly eking out small gains or losses, but
still beating major market indexes.

Hedge funds using global macro investing strategies were
the strongest performers, while other strategies continued to
stay near flat or slip lower, according to data this week.

Hedge Fund Research’s HFRX Global hedge fund index finished
August up 0.17 percent for the month, according to data on its
website, compared with the benchmark Standard & Poor’s 500
index (.SPX: ), which fell 4.7 percent in August and the MSCI
World Index (.MSCIWD: ), which also fell about 4 percent last
month.

Credit Suisse’s Liquid Alternative Beta Index, which tries
to replicate return profiles of hedge funds and alternative
investment strategies, fell 1.14 percent, suggesting many fund
managers also saw a negative performance in the month.

“Hedge funds were negatively impacted by broad market
sell-offs in August, although certain sectors showed resilience
amid the increased market volatility,” Credit Suisse said in a
statement.

The most positive strategies for the month, according to
HFRX indexes, were quantitative funds, which rely on
mathematical models, and Macro funds, which invest in
everything from commodities and currencies to stocks and
bonds.

The HFRX Macro Index grew 1.45 percent in August, while
Credit Suisse said the Global Macro strategy was the only one
of its beta indexes that was positive in the month.

Individual hedge funds do not often publicly release their
results in order to keep their strategies secret. But some
managers did see strong returns, even as concerns about the
global economic recovery dogged markets.

Fund manager David Einhorn, who oversees $6.8 billion at
Greenlight Capital, returned 4.1 percent net of all fees and
expenses in August for his fund, according to a posting on the
firm’s website this week. [ID:nN01140266]

Och-Ziff Capital Management Group (OZM.N: ), the New York
fund run by Daniel Och, said assets at its flagship Och-Ziff
Master Fund rose 0.27 percent in August on a total return basis
and that it saw its total assets under management rise $200
million to $26.1 billion. [ID:nN02216952]

Dwight Anderson’s Ospraie Equity Fund, which buys and sells
sell the stocks of commodity and materials companies, slipped
0.62 percent in August on a net basis, but is up 5.52 percent
for the year.

While hedge fund managers are preserving capital and
beating the market, many will still face pressure to live up to
investor expectations for out-sized gains at year end.

Dallas-based Carlson Capital’s flagship multi-strategy
Double Black Diamond Fund was up 0.61 percent for August and is
up 6 percent for the year through August, according to a person
familiar with the fund’s returns.

But like other funds, its investors may be used to seeing
higher numbers. This time last year the over $4 billion fund
was up about 20 percent for the year and it typically delivers
annual returns of about 11 percent.
(Reporting by Emily Chasan; editing by Andre Grenon)

Hedge funds eke out a win in rough August