Wednesday, 1 October 2014
Last updated 12 hours ago
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).
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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