By Nell Mackenzie
London (Multibagger) - In a turbulent month for the financial markets, global hedge funds managed to deliver positive returns in August, overcoming challenges posed by the unwinding of popular yen carry trades. According to a prime brokerage research note from JPMorgan, hedge funds posted an average positive return of 1.3% for the month.
Despite early market jitters driven by U.S. recession concerns and a surprise Japanese rate increase, some hedge fund strategies outperformed expectations. The Eureka Fund of British hedge fund Marshall Wace, for example, finished slightly down in August but still boasted an impressive 11% gain since the beginning of the year.
Stock trading hedge funds utilizing systematic algorithms had a particularly strong month, returning around 2% by the end of August. Multi-strategy hedge funds, on the other hand, experienced more modest gains, averaging 0.1% for the same period.
British hedge fund firm Winton Capital saw mixed results in August, with its multi-strategy Winton Fund slightly down and its Diversified Macro Fund experiencing a small loss. However, both funds have shown solid year-to-date performance, with the Winton Fund up 8.1% and the Diversified Macro Fund up 4%.
Meanwhile, hedge fund Schonfeld Strategic Advisors' flagship fund Strategic Partners and its Fundamental Equity fund both delivered positive returns in August, further highlighting the resilience of the hedge fund industry in the face of market volatility.
Overall, the performance of global hedge funds in August demonstrates the sector's ability to navigate challenging market conditions and deliver strong returns for investors. With a diverse range of strategies and approaches, hedge funds continue to play a vital role in the financial markets, offering opportunities for investors to diversify their portfolios and achieve attractive risk-adjusted returns.