Dow Jones Hedge Fund Indices

Date: Friday, September 12, 2008
Author: Opalesque.com

Dow Jones Hedge Fund Indices: All strategies except for merger arbitrage posted losses for August
Hedge funds continued to struggle for the year as only two of the six strategies covered by Dow Jones Hedge Fund Indexes posted net-of-fees gains for the month of August.

Merger arbitrage posted gains in August with a return of 1.10%. The strategy is the only benchmark with positive gains for the year with a return of 1.62%. Event driven had a small gain in August with a return of 0.05%, but is still down for the year with a return of -2.06%.

The other strategies fell in August: Convertible arbitrage, distressed securities, equity long/short declined just under -1%, and make up the bottom performing strategies for the year. Equity market neutral had the largest drop for the month of August, falling more than 3%, but the strategy remains in the middle of the pack on a YTD basis with a return of -2.39%.

DJHFSB	Net-of-fees Performance 2008
	August	1Q	2Q	YTD
Convertible Arbitrage	-0.77%	-4.77%	-1.28%	-8.44%
Distressed Securities	-0.94%	-5.49%	-0.08%	-7.56%
Equity Long/Short	-0.65%	-6.21%	9.33%	-2.38%
Equity Market Neutral	-3.22%	-0.52%	2.01%	-2.39%
Event Driven	0.05%	-1.75%	1.81%	-2.06%
Merger Arbitrage	1.10%	-0.64%	1.08%	1.62%

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RBC Hedge 250 Index down -1.05% in August, -5.22% YTD
RBC Capital Markets yesterday reported that for the month of August 2008 the RBC Hedge 250 Index® had a net return of -1.05 per cent. This brings the year-to-date return of the Index to -5.22 per cent. These returns are estimated and will be finalized by the middle of next month. The return for July 2008 has been finalized at -2.38 per cent.