Hedge Funds Fall Almost 3% In Sept.

Oct 6 2011 | 11:06am ET

After August's bloodbath, the hedge fund industry needed a respite in September. It didn't get one.

The average hedge fund plunged another 2.99% last month, following its loss of 3.47% the prior month, according to Hedge Fund Research's HFRX Global Hedge Fund Index. The benchmark is now down 8.43% on the year with just three months to go.

All but one of the 15 strategy and substrategy indices tracked by HFRX were in the red last month, some spectacularly so. Fundamental value funds plummeted 8.05% last month, leaving them down an average of 23.78% on the year—the worst of any strategy or substrategy. Market directional funds weren't far behind, dropping 7.63% (down 16.51% year-to-date).

Two other strategies have suffered double-digit losses through the first nine months of the year: Equity hedge funds have lost an average of 18.39% after falling 4.85% last month, and fundamental growth funds are down 10.84% following a 4.55% September swoon.

Outside of equity strategies, losses were more modest—with the exception of distressed restructuring funds, which lost 4.18% on the month (down 7.8% YTD). Event-driven funds were down 2.2% (down 5.43% YTD), relative value arbitrage funds 2.16% (down 4.1% YTD), macro funds and commodity trading advisers 2% (down 2.97% YTD) and convertible arbitrage funds 1.04% (down 1.77% YTD).

Only systematic diversified CTAs steered clear of the carnage. The strategy rose 1.98% last month and is up 0.93% on the year.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.