| LONDON, Sept 13
LONDON, Sept 13 Hedge funds racked up further
gains in August, helped by rising stock markets, low volatility
and the relative absence of major political shocks in the euro
zone, whose debt crisis has proved so hard to handle for
managers in recent years.
The SS&C GlobeOp Hedge Fund Performance Index, which tracks
the performance of the majority of hedge fund services provider
GlobeOp's $187 billion in assets administered, rose 0.83 percent
in August, taking returns so far this year to 6.76 percent, the
firm said in a statement.
Returns are shown gross, meaning they do not take account of
hedge fund operators' lucrative fees, typically a 2 percent
annual management charge and 20 percent of performance.
Funds were helped by gains in markets - the S&P 500,
including dividends, gained 2.25 percent - while the month also
featured a drop in volatility, as many investors took off bets
ahead of major announcements from the European Central Bank and
U.S. Federal Reserve in September.
The gains mean that hedge funds have made money in every
month so far this calendar year on a gross basis, according to
SS&C GlobeOp, although including the effects of fees, funds
posted a marginal 0.01 percent drop in June.
According to Hedge Fund Research (HFR), a rival index
provider, the average hedge fund gained 0.76 percent in August,
taking gains this year to 3.49 percent.
Funds are this year trying to avoid another calendar year of
losses, which would mean they had lost money in three out of the
past five years, according to HFR data.
SS&C GlobeOp says its index avoids so-called "survivorship
bias" as funds cannot choose whether or not they report
performance. The index is asset-weighted, meaning the
performance of bigger funds counts for more than smaller ones.