Hennessee Announces August Hedge Fund Results

by Philip Morton, Investors Offshore.com

17 September 2003

Hedge funds returned an average of 1.76% last month, according to the Hennessee Hedge Fund Index, bringing year-to-date results to 12.26%.

Although the monthly return for hedge funds trailed the market, with the S&P 500 Index returning 1.92%, Hennessee believes that this will all change in the third and forth quarters of 2003.

'Hedge funds, as they are more opportunistic and willing to take risk are still cautious and not yet fully exposed. Yet they're capturing most of the upside,' Charles Gradante, managing principal of the Hennessee Group explained, continuing:

'I expect there will be a correction in the equity market and hedge funds may have an opportunity to catch up and maybe surpass the market.'

The Hennessee Pacific Rim Index performed best last month, the firm revealed, bringing in returns of 5.85%. The Latin American and Emerging Markets Indices also performed well, bringing in 5.22% and 3.95% respectively.

Notable under-performers in August were the Short Biased Index and the Convertible Arbitrage Index , which dropped by 1.08% and 0.56%.

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