Thanks, Heretic, for the great link. I'll post in case it no longer becomes available.
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Wednesday September 16, 1:14 pm Eastern Time
Company Press Release
Hedge Funds Trounce All Equity Indices in August
Short Sellers Big Winners
NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 16, 1998--In the face of some of the greatest global market instability in recent memory, U.S. and Offshore hedge funds on average substantially outperformed every major equity investment index in August, George P. Van, chairman of Van Hedge Fund Advisors International, Inc. (VAN), a leading hedge fund investment advisory firm, said today.
''For quite some time, hedge funds have been crying 'Bear!' and lagging the markets due to their defensive positions. In August, they were vindicated,'' Mr. Van noted. ''While the Average Equity Mutual Fund lost -16.6% and the S&P 500 lost -14.5%, the average U.S. hedge fund lost only -6.0% and the average Offshore hedge fund lost -9.7%. As a result, year to date, U.S. hedge funds on average are up 1.1% while the Average Equity Mutual Fund is down -11.2%, the DJIA is down -3.6% and the S&P 500 is down -0.4%.
''Approximately 25% of U.S. hedge funds and 20% of Offshore hedge funds were profitable in the month. Equally importantly, some of the strategies specifically designed to be uncorrelated to the markets performed as they should. The 'market neutral' strategies and market timing funds either had very small losses or were profitable.
''We continue to recommend increasing allocations to hedge funds in light of their overall superior performance during periods of market instability. As we've pointed out before, during the six S&P 500 down quarters experienced since the beginning of 1988, the average U.S. hedge fund gained 3.1%, while the S&P 500 and the Average Equity Mutual Fund were down -21.7% and -23.7%, respectively. This is a telling point for investors, particularly those who've staked their
futures on index funds and similar vehicles.
''August's major sell-off presented U.S. and Offshore Short Selling hedge funds with substantial profit opportunities. U.S. Short Selling hedge funds on average were up 29.1% in August, while their Offshore counterparts were up 20.6%, thereby providing investors in these funds with relief from losses incurred over the course of one of the longest running bull markets in history,'' Mr. Van concluded.
Year-to-date through August, the best performing hedge fund investment styles world-wide were as follows: U.S. Short Selling (+26.9%), U.S. Market Timing (+17.4%) and Offshore Short Selling (+16.2%).
For August and year-to-date through August 1998, hedge fund returns by investment style were as follows: (#reply-5774526)
Van Hedge Fund Advisors International, Inc. provides monthly hedge fund returns, as well as other hedge fund information, at www.vanhedge.com. A sister company maintains one of the largest data banks of hedge funds in the world, with over 4,000 hedge funds. The primary database contains detailed information on over 2,600 hedge funds (approximately 1,500 U.S. funds and 1,100 Offshore funds) that manage over $140 billion in assets; the secondary database contains basic information on approximately 1,400 funds. The Company has obtained assistance from faculty of the Owen Graduate School of Management at Vanderbilt University to help ensure the statistical validity of its hedge fund research.
A registered investment advisor, Nashville, Tenn.-based Van Hedge Fund Advisors International, Inc. introduces top-performing hedge funds to substantial investors in the U.S. and abroad.
(The Company's information on hedge funds is based on information received (and not audited or independently verified) from the hedge funds in its databases and may not be representative of all hedge funds. Different statistics may be based on different numbers of funds. Averages are not dollar-weighted. Past results are not necessarily indicative of future performance.)
Database Reference: Investments, Hedge, Funds, Finance, Mutual Funds, Futures, Derivatives, Stocks, Bonds, Currencies, Commodities, U.S. Hedge Funds, Offshore Hedge Funds, Market Neutral.
Contact:
Van Hedge Fund Advisors International Inc., Nashville George P. Van, 615/661-4748 e-mail: vhfai@vanhedge.com www.vanhedge.com |
