Bloomberg News

Hedge Funds Gained 0.7% Last Month as Global Stock Markets Rose

September 07, 2012

Hedge funds gained last month as global stocks rallied on speculation the Federal Reserve may take additional steps to boost the economy and Europe moved closer to containing its sovereign-debt crisis.

Funds climbed 0.7 percent in August, according to data compiled by Bloomberg. Long-short equity, multistrategy and global macro managers gained.

Global stocks as measured by the MSCI All-Country World Index (MXWD) have surged 4.8 percent since the end of July, including reinvested dividends, as Fed Chairman Ben S. Bernanke said the central bank had the ability to take additional steps to boost the economy, and speculation grew that Spain would get a bailout. European Central Bank President Mario Draghi said yesterday that policy makers have agreed on a plan to buy unlimited government debt.

“You have a temporary postponement of concern,” said Emma Sugarman, global head of capital introduction at BNP Paribas SA in New York, which helps hedge funds meet prospective investors.

Emerging markets stock funds performed best, gaining 1.5 percent in August, followed by macro funds, which bet on economic trends and rose 1.3 percent. The increase last month brought hedge funds’ gains this year to 2.6 percent. The funds are trailing equities, which rose 9.9 percent worldwide, including dividends.

Pine River

The main Bloomberg hedge fund index is weighted by market capitalization and tracks 2,738 funds, 1,264 of which have reported returns for August. The index is down 10 percent from its July 2007 peak.

Multistrategy funds returned 0.7 percent in August and fell 2.9 percent this year. Pine River Capital Management LP, the $10 billion multistrategy firm based in Minnetonka, Minnesota, posted a 1.9 percent increase last month in its Pine River Fund, which has $1.5 billion in assets and is run by Aaron Yeary, according to an e-mail obtained by Bloomberg News. The return brings gains this year to 14 percent. The firm’s assets include hedge funds, managed accounts and Two Harbors Investment Corp. (TWO:US), a mortgage real estate investment trust.

Carlson Capital LP’s Double Black Diamond fund rose 3 percent last month and 7.7 percent this year, according to a person briefed on the returns, who asked not to be named because the information isn’t public. The $6.6 billion Dallas-based hedge fund is run by Clint Carlson.

New Mountain

Visium Asset Management, the $3.5 billion New York-based hedge fund, posted a 1.5 percent August gain in its Visium Global Fund, bringing returns this year to 14 percent, according to a person familiar with the matter. The fund is managed by Jacob Gottlieb.

Long-short equity funds, whose managers can bet on rising and falling stocks, climbed 0.5 percent last month and 0.8 percent in 2012.

New Mountain Vantage Advisers LLC, a $1.5 billion New York- based long-short equity fund, posted a 2.4 percent August gain in its New Mountain Vantage LP fund, bringing yearly returns to 8.3 percent, according to a person familiar with the matter. Daniel Riley and David Frost are the fund’s co-portfolio managers.

Spokesmen for the firms declined to comment on the returns.

To contact the reporter on this story: Kelly Bit in New York at

To contact the editor responsible for this story: Christian Baumgaertel at

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