Hennessee Group LLC, today announced that hedge funds underperformed the S&P 500 in August, while outperforming the S&P 500 during the year-to-date.
“Hedge funds underperformed the broad equity markets for the third month in a row,” says E. Lee Hennessee, Managing Principal of Hennessee Group LLC. “Hedge fund portfolios that did not overweight asset allocations to international, opportunistic trading, and technology funds underperformed the Hennessee Hedge Fund Index in August.”
“Equity hedge fund managers lagged the markets in August because managers lowered gross and net exposure at the end of July,” adds Charles Gradante, Managing Principal of Hennessee Group LLC. “Consequently, they did not participate in the market rally, as new 52-week highs outpaced new lows by 10 to 1. Most managers do not feel the market is fundamentally positioned to make new highs in the Dow.”