Hedge Funds Up 0.99% In Sept.

Oct 12 2012 | 11:32am ET

Hedge funds returned less than 1% to close out the third quarter, according to Greenwich Alternative Investments.

The Greenwich Global Hedge Fund Index rose 0.99% in September and is up 4.61% on the year. Long/short equity hedge funds were behind much of the gain, rising an average of 2.03% (5.54% year-to-date), followed by event-driven funds (1.45% in September, 6.2% YTD), market-neutral funds (0.78%, 5.23% YTD), specialty strategies (0.76%, 6.19% YTD) and arbitrage funds (0.35%, 6.94% YTD).

Among sub-strategies, long/short growth funds were the standout, rising 2.6% on the month (6.64% YTD). Distressed securities funds added 2.24% (8.19% YTD), long/short value funds 2.07% (6.86% YTD), long/short opportunistic funds 1.73% (2.39% YTD), merger arbitrage funds 1.11% (5.04% YTD) and long/short credit funds 1.06% (8.59% YTD).

On the red side of the ledger were short-biased funds, which fell 4.61% (down 16.61% YTD), futures funds (down 0.84%, up 0.22% YTD) and directional trading funds (down 0.46%, up 1.14% YTD).

Regionally, emerging markets funds in Asia were best in September, adding 4.54% (5.26% YTD), followed by European emerging markets funds at 3.69% (6.14% YTD) and those in Latin America at 3.25% (9.06%). All told, emerging markets funds were up an average of 3.43% (5.24% YTD). In the developed world, where the average hedge fund was up 0.76% (4.86% YTD), North American (1.55%, 7.06% YTD) and Asian (1.53%, 2.66% YTD) were best.

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Editor's Note