Hedge Fund Monthly Update – August 2013 (UBS)

August 2013

KEYWORDS: Equity markets, Macro, MSCI, Hedge Fund Research, DJ UBS Commodity Index, hedged equity, alternative investment, CTA, global macro, commodities, gold, event driven, fixed income, Australia, Japan, credit hedge funds, Asian Hedge Funds, prime broker, securities lending, European Union, capital formation, Emerging Markets



  • UBS

Global equity markets sold off in August, particularly towards month end as the Syrian conflict took center stage and the likelihood of Western military intervention increased. Continued uncertainty about the path of future Fed policy in the US (and the identity of the new Fed chair) continued to unsettle financial markets. Some key emerging markets with current account deficits continued to be heavily sold on fears of fund outflows (India, Indonesia, Turkey, Brazil, South Africa). These net debtor countries are reliant on foreign savings for investment, and higher rates in the US make it harder for them to attract foreign capital. This negative sentiment in emerging markets appeared to carry over to developed markets. In August, the MSCI World Index returned -2.1%, with all major regions negative.

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