Hedge funds held gains in August market rollercoaster

Hedge funds held gains in August market rollercoaster

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By Nell Mackenzie and Carolina Mandl

LONDON (Reuters) -Global hedge funds published favorable returns in August even as the relax in popular yen bring trades whipsawed markets, according to bank researchstudy and sources familiar with the funds’ efficiency on Wednesday.

Hedge funds published an typical 1.3% return for the month, JPMorgan stated in a prime brokerage researchstudy note on Tuesday.

Some methods carriedout muchbetter than others since in early August, world stocks sank in action to U.S. economiccrisis issues and a surprise Japanese rate boost wrong-footed currency speculators. Equity markets lateron rebounded to near-record highs.

Many stock traders at hedge funds had from July started to lower their market danger, stated Jon Caplis, chief executive of hedge fund researchstudy company PivotalPath, which tracks introduces through prime brokers and financier sources.

“During the preliminary big leg down, numerous were purchasing the dip.”

Different hedge fund methods which usage algorithms to trade patterns were hurt by the unexpected relocation in the yen, he stated.

“While the yen did offer back much of the gains, motion in Treasuries likewise likely went versus them offered them continued brief positions,” stated Caplis.

A group of pattern funds, or product trading consultants (CTAs), tracked by Societe Generale (OTC:) published a approximately 3%

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