This Hedge Fund With A Sharpe Of 2.56 Warns “An Increasing Number Of Storm Clouds Building”

Deer Park Road's STS Master Fund was up 4.17% for August, according to the fund's quarterly investor letter. For comparison, the S&P 500 Total Return index was down 1.58% for the month, while the Credit Suisse Hedge Fund Index was down 0.14%. For the first eight months of the year, the fund was down 4.76%, compared to the S&P 500 Total Return's 18.34% gain and the Credit Suisse Hedge Fund Index's 7.05% gain. The hedge fund has a sharpe ratio of 2.56 vs 0.48 for the S&P 500.

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Storm clouds building

In his August letter to investors and recent stat sheets, which was reviewed by ValueWalk,