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

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.