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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note