Credit Suisse/Tremont index up 1.53 per cent in August

Date: Wednesday, September 23, 2009
Author: Emily Perryman, HedgeWeek

The Credit Suisse/Tremont Hedge Fund Index finished up 1.53 per cent in August as wider dispersion in the markets provided opportunities for hedge funds.

This marks the sixth straight month of positive performance for the index, bringing year-to-date returns to 11.57 per cent.

A report by Credit Suisse Tremont says divergent market views remain among managers as some re-position their portfolios to prepare for volatility while more bullish investors continue to drive markets higher.

Convertible arbitrage continued to lead the index with a monthly return of 3.39 per cent. This was the eighth consecutive month of positive returns for the strategy, bringing year-to-date performance to 35.58 per cent.

Mortgage-related instruments continued to be a driver of returns for a number of Fixed income arbitrage managers in August. The strategy had the second-best monthly performance in the index, finishing up 2.38 per cent.

The economic and market environment has become increasingly favorable for event driven managers focusing on distressed debt, with the sector returning 2.17 per cent for the month.

Dedicated short bias managers continue to struggle although the sector showed marked improvement over its July performance.