Hedge funds lost 2.13% on average in August as markets turned volatile amid rising concerns over slowing growth and the worsening sovereign debt crisis in Europe. However, hedge funds handily outperformed the MSCI World Index, which dropped 7.7% for the month.
Long/short equity managers were severely impacted by the gyrations in global markets, losing 3.93% on average in August. Hedge funds focusing on Asia (ex-Japan) bore the brunt of losses, dropping over 5% for the month. Europ