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Event driven strongest Dow Jones hedge fund strategy

September 11, 2009 at 2:43 pm

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Event driven was again the strongest performer in August with a gain of 1.70 per cent for the month, and now sits atop the other strategies for the year with a 9.51 per cent return, accPARA_BREAK_SENTINEL_9f8e7d6c

Event driven was again the strongest performer in August with a gain of 1.70 per cent for the month, and now sits atop the other strategies for the year with a 9.51 per cent return, according to Dow Jones Indexes.

Equity market neutral posted a small loss of 0.59 per cent for the month of August and a loss of 3.69 per cent for the year. This was the only strategy to post a loss for the month of August and YTD.

The two remaining strategies, merger arbitrage and equity long/short, showed gains of 0.96 per cent and 0.86 per cent respectively in August.

Convertible arbitrage was suspended on 2 January 2009 and remained suspended through the month of August.

Distressed securities was suspended on 4 May 2009 and remained suspended through the month of August.

On a float-adjusted basis, the Dow Jones US Total Stock Market Index, the only broad measure of the domestic equity market, returned 3.61 per cent in August bringing its YTD gain to 16.69 per cent.

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index, gained 1.44 per cent in August for a gain of 14.84 per cent for the year.

Finally, the Dow Jones Global Total Stock Market Index, the broadest measure of global equity markets, was up 3.85 per cent for the month giving the index a positive YTD gain of 25.37 per cent for 2009.