August hasn't been all that kind to the hedge fund industry. An index published by Credit Suisse/Tremont shows that funds on average are down 1.54 percent for the first two weeks of the month. Eight of the nine investment styles were down. The only winning style was fixed income arbitrage. The subindex was up 0.31 percent. Financial News Online notes that not all funds in the class are winners. But some that fared well did so spectacularly. Consider the funds run by Capula Investment Management. It's up nearly 2 percent in August. For the year, it's up 7 percent. Not bad at all. The secret? That remains unknown, but I suspect that the winners in this class simply made the right bond picks. Perhaps they also had the right bias on the short-side. Not sure. The point is there are a few winners out there.  

For more:
- here's the Financial News Online article