Hedge Funds Fall 5% In Third Quarter

Oct 4 2011 | 12:43pm ET

August was the worst month for hedge funds in almost three years, and September wasn't much better, capping off the worst quarter for the industry since the height of the financial crisis.

The average hedge fund slipped 2.31% last month, Bank of America's Hedge Fund Monitor shows. That leaves the average fund down 5.02% in the third quarter, the worst such figure since the third quarter of 2008, when the average hedge fund lost 9.48%.

Long/short hedge funds were hardest hit in September, shedding 4.76%. Commodity trading advisers, with flat returns, were the best on the month.

The BofA report blamed the European debt crisis and a collapse in commodities prices for the losses.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...