Van Hedge Fund Index Shows Modest Gain For August

by Carla Johnson, Investors Offshore.com

10 September 2004

After several months of losses in the hedge fund sector, The Van Global Hedge Fund Index gained 0.2% net of fees in August according to a preliminary report released today by Van Hedge Fund Advisors International.

"After sustaining losses in July, it looks as if hedge funds recovered slightly in August, with about 60% of the funds in our sample reporting a net gain for last month," observed George Van, Chairman of Van Hedge.

He added: "Rising, and then falling, oil prices created a lot of volatility among equities last month, but world stock markets managed to end the month up a bit. The same appears to be true for long/short equity hedge funds, and most other hedge fund strategies as well.”

“Macro strategy funds, however, have reported some of the worst August results we've seen so far. Those funds often make directional bets on various commodities and economic sectors; market movements the last few months have proven difficult for those funds to anticipate," observed Mr Van.

Despite the brighter performance, the Van Index appears to have been modestly outperformed by the major equity benchmarks last month, including the S&P 500 which gained 0.4%.

However, on a year to date basis, hedge funds in the Van index have performed better then stocks, gaining 1.5% net through August against the S&P’s 0.4% gain.

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