<div>2016 is a year that is turning out to be a winner for relative value hedge funds focused on distressed and event driven strategies. These two along with special situations, equity market direction, and convertible arbitrage also proved to be the August winners. The losers for the month were fundamental growth and systematic CTA's. Both these strategies need movement in economic or firm-specific fundamentals which just did not occur for the month. Relative to the flat equity and fixed income markets, August performance for hedge funds was at best fair. </div>