The Dow Jones Credit Suisse Core Hedge Fund Index fell less than half that of broad equity indexes in August.

Oliver Schupp, President of Credit Suisse Index Co., LLC, said, "The Dow Jones Credit Suisse Core Hedge Fund Index finished down 2.88% in August. Despite challenging conditions throughout the month, hedge funds appeared to be effective in providing a degree of capital preservation when compared to global equity markets, which fell 7.69% as represented by the Dow Jones Global Index. This outperformance is largely due to the strategic de-risking of many managers who began reducing net exposure in the weeks, or even months, preceding the correction."

For further analysis of how hedge funds performed in the weeks following S&P's downgrade of the U.S. credit rating, please see ourAugust 14thpress release "Hedge Fund Hold Their Own in August" or clickhere.