The RBC Hedge 250 Index rose an estimated 2.2% in September, accounting for most of the year's 2.54% advance.
All nine of RBC Capital Markets' strategy indices were in the black last month, and all but two have a positive return year-to-date. Mergers and special situations funds led the way last month with a 3.54% return (5.27% year-to-date), followed by equity long/short at 3.45% (1.12% YTD). The latter no doubt benefit strongly for soaring stock prices; the Standard & Poor's 500 Index and Dow Jones Industrial Average enjoyed their best Septembers since the Great Depression last month.
Managed futures funds added 2.13% on the month (3.77% YTD), equity market neutral funds 1.92% (down 0.72% YTD), credit funds 1.81% (6.5% YTD), fixed-income arbitrage funds 1.44% (12.52% YTD), macro funds 1.21% (1.58% YTD) and convertible arbitrage funds 0.42% (down 1.45% YTD).