Hedge funds enjoyed their best month of the year in September, rising 3.48%, according to the Hennessee Group.
Despite that optimistic report, hedge funds weren’t able to fully capitalize on the strongest September in more than 70 years for the Standard & Poor’s 500 Index and Dow Jones Industrial Average. The latter added 8.9% last month, but still trails the Hennessee Hedge Fund Index, which is up 4.7% in 2010, for the year.
“Hedge funds had their best month since May of 2009 and continue to outperform the broad market year-to-date,” Hennessee’s Charles Gradante said. “While managers are concerned about elevated macroeconomic risks, we are beginning to see growing optimism about the equity markets in the short term.”