Hennessee: Hedge Funds Up 5% Through Sept.

Oct 9 2012 | 12:57pm ET

Hedge funds continued to lag the broader markets in September, although most posted gains to close out the third quarter.

The Hennessee Hedge Fund Index rose 1.26% last month, about half the Standard & Poor's 500 Index. The benchmark is now up 5.03% on the year, compared to almost 15% for the S&P 500.

"Hedge funds performed well in September," Hennessee Group's Lee Hennessee said. "They were able to capture a portion of the upside due to increased net exposures. Shorting and hedging continue to be a drag on performance."

But, she added, "we are encouraged by an improvement in hedge fund performance over the last couple months. Correlations have declined, and managers are being rewarded for good stock selection."

Long/short equity funds performed best in September, rising 1.51% (5.13% year-to-date). Global and macro funds rose 1.1% (3.32% YTD), and arbitrage and event-driven funds 0.8% (6.06% YTD).

Just three of the 21 Hennessee strategy indices reporting for September were in the red on the month. Short-biased funds continue to take it on the chin, losing 3.7% on the month (down 12.86% YTD). Macro funds shed 1.63% on the month, but remain up 0.31% on the year. Likewise, fixed-income funds lost 0.09% in September but are still up 1.64% in 2012.

Other than short-bias, only Asia-Pacific funds are in the red on the year. But such funds cut their average loss to 0.42% in September with a 1.24% return.

The winners were led by 2012's strongest strategy, healthcare and biotechnology, up 4.69% (10.11% YTD). Emerging markets funds soared into the black with a 3.57% return (2.59% YTD), followed by financial equities funds (2.72% in September, 9.25% YTD) and Latin America funds (2.67%, 7.69% YTD).


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.