The Credit Suisse/Tremont Hedge Fund Index is down 1.53 percent in August 2007, although the Index is up 7.03 percent year-to-date, according to Oliver Schupp, President of the Credit Suisse Index Co. Inc.
“In August, the subprime mortgage contagion led to a widespread sell off that swept equities, commodities and low-grade credit markets. The sell off was exacerbated by the highest jump in the overnight loan rate in over six years and banks and brokerages reported declining values in credit investments. Correspondingly, inflation in China accelerated to the highest rate in more than ten years, volatility soared and U.S. consumer confidence reached its lowest level since 2005.
“Overall, this market environment has negatively impacted the performance of all hedge fund sectors within the Credit Suisse/Tremont Hedge Fund Index,” says Oliver Schupp.