Monday, 28 July 2014
Last updated 5 hours ago
Oct 21 2010 | 4:57pm ET
Hedge funds added 3.7% in September, according to the Bloomberg Hedge Fund indices, with all strategies—including, unusually, short-bias—in the black on the month.
The Bloomberg Aggregate Hedge Fund Index itself surged into the black last month and is now up 2.6% on the year. With U.S. stocks enjoying their best September in more than 70 years, long-bias equity funds led the way with a 6% return (2.5% year-to-date).
Surprisingly, short-bias funds weren't far behind with a 4.9% return (4.4% YTD). Most hedge fund index families showed short hedge funds taking a beating, with many down by double-digits both on the month and year.
Emerging market equities also did well, adding 5.3% on the month (9.1% YTD). Equity fundamental market-neutral placed in September with a 5.2% return, but it wasn't enough to erase the strategy's 2010 loss, which now stands at 4.1%. It is the only strategy index in the red on the year.
Long/short equity funds returned 4.9% on the month (4.6% YTD), equity statistical arbitrage funds returned 3.6% (2.5% YTD), commodity trading advisers and managed futures funds returned 3.5% (0.8% YTD) and fixed-income arbitrage funds returned 3.3% (9.4% YTD).
Merger arbitrage funds added 2.9% (flat YTD), macro funds added 2.8% (1.6% YTD), multi-strategy funds added 2.7% (1.6% YTD), distressed securities funds added 2.1% (8.9% YTD) and convertible arbitrage funds added 1.2% (3.6% YTD).
Mortgage-backed arbitrage funds have proven the best bet on the year with a 14% return, followed by emerging market equities and distressed securities.
Funds of hedge funds returned an average of 3.2% last month to cut their year-to-date loss to 1.3%.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…