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Scotia Capital Canadian Hedge Fund Performance Index finished July with -6.55%


Date: Tuesday, August 19, 2008
Author: Scotia Capital

Scotia Capital Canadian Hedge Fund Performance Index finished July with -6.55% on equal weighted basis:
The index underperformed both the TSX Composite and the S&P 500 index on both an asset weighted basis and equal weighted basis. July was another volatile month for global equity markets: negative reactions to rumours about the viability of financial institutions turned positive when indications of bailouts by the US government were assured. Oil and commodities also experienced a rocky ride as the long run-up in prices reversed in the second half of July over macroeconomic factors and mounting concerns of a global economic slowdown.

While rising energy and commodity prices had helped cushion the Canadian equities market earlier this year, their turnaround in July contributed to the TSX Composite finishing the month down 6.05%. Global equity markets fared comparatively better - including the S&P 500, assisted by the rally in financials and down only 0.69% (in $CAD) for the month. Canadian hedge fund managers faced one of their most challenging months as the reversal in profitable directional plays on energy, commodities and financials negatively impacted the previous strong YTD performance.