Hedge Fund Monthly Update – August 2014 (UBS)

August 2014

KEYWORDS: MSCI, long/short equity, interest rate, fixed income, European Union, hedge funds, commodities, mergers and acquisitions, China, strategy, Germany

Authors:

UBS

Organizations:
  • UBS

Summary:

This month’s highlights include:

– Equity Long Short -1.2% in July, +0.4% YTD (MXWD +4.5% YTD)
– UBS Long Book: clients add to IT longs for third straight month
– UBS Short book: clients reduce Health Care shorts by the most for second month
– Long European fixed income pays off again in July, but movement in US interest rates continues to be problematic for macro hedge funds
– USD bulls rewarded in July; increased short interest in EURUSD
– Large outflows from US high yield in July as spreads widen; diminished liquidity as dealers’ balance sheets are a fraction of pre-crisis size.

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