Comments on: It’s Official: Most Hedge Fund Strategies Lost Money in August http://www.nakedcapitalism.com/2007/09/its-official-most-hedge-fund-strategies.html Sun, 22 Nov 2009 13:16:39 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Yves Smith http://www.nakedcapitalism.com/2007/09/its-official-most-hedge-fund-strategies.html#comment-755 Yves Smith Fri, 07 Sep 2007 15:53:00 +0000 http://www.nakedcapitalism.com/2007/09/its-official-most-hedge-fund-strategies-lost-money-in-august/#comment-755 I agree you have to take the indices with a grain, maybe even a handful of salt, particularly given that indices for supposedly the same strategy ("event driven", say) published by different services will show returns that often differ by at least 1%. Yet these indices are used by fund consultants to analyze performance and make recommendations to institutional investors on which fund to invest in.<br/><br/>Nevertheless, the indices cover a fairly large number of hedge funds, and in aggregate showed a loss for August. It's a big enough, even if imperfect, sample so as to be telling. I agree you have to take the indices with a grain, maybe even a handful of salt, particularly given that indices for supposedly the same strategy (”event driven”, say) published by different services will show returns that often differ by at least 1%. Yet these indices are used by fund consultants to analyze performance and make recommendations to institutional investors on which fund to invest in.

Nevertheless, the indices cover a fairly large number of hedge funds, and in aggregate showed a loss for August. It’s a big enough, even if imperfect, sample so as to be telling.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/09/its-official-most-hedge-fund-strategies.html#comment-752 Anonymous Fri, 07 Sep 2007 12:16:00 +0000 http://www.nakedcapitalism.com/2007/09/its-official-most-hedge-fund-strategies-lost-money-in-august/#comment-752 I am very sceptical of these hegde fund indices - bear in mind that one index provider categorized a leveraged long structured credit strategy as "fixed income arb". So who knows what they lumped in with global macro? I am very sceptical of these hegde fund indices – bear in mind that one index provider categorized a leveraged long structured credit strategy as “fixed income arb”. So who knows what they lumped in with global macro?

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