That August Bloodbath: 75% of Hedge Funds DownShould Investors Avoid Anything With The Word ‘Global’ In The Title?

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How bad was August for hedge funds? Well, three-quarters of those that report to a performance tracker Barclay Group lost money in August. It’s the worst month in more than a year, Reuters reports. Among the biggest losers was Goldman Sachs’ Global Alpha hedge fund, which fell 22.5 percent, its worst month ever. J.P. Morgan's Highbridge Capital hedge fund business lost roughly 18% in August, according to published reports. The computers at Tewksbury Investment Fund managed to computer their way into an 8% loss. Black Mesa Capital ended August down 10.7%.
The Barclay Group report tracks only US hedge funds. But the damage in August wasn’t just confined the US funds. UK based Mulvaney Capital Management’s Global Markets Fund suffered the “Global” curse as well, clocking in a 19.4% loss for month.
But don’t worry your pretty little heads about it. Because August was a statistical outlier. Markets only perform like that every 10 billion years or whatever. Definitely can’t happen again. All the guys with fancy computers who said August wouldn’t happen are saying it won’t happen again. And what are the odds that they’d be wrong twice.

Most US hedge funds report August loss-tracker
[Reuters]

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