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.
First reported by Kelly Bit, Bloomberg News, 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.