HFRI: Hedge Funds Up 1.6% In Sept.

Oct 11 2013 | 9:06am ET

Hedge funds enjoyed broad gains in September, although the returns suffered towards the end of the month amidst well-founded fears of a U.S. federal government shutdown.

Hedge Fund Research's HFRI Fund Weighted Composite Index rose 1.6% on the month and is up 5.58% on the year. The Standard & Poor's 500 Index added nearly twice as much in September and is up nearly 20% in 2013.

Still, a rising tide lifts almost all boats, with 19 of the 22 strategies tracked by the HFRI suite in positive ground. Technology and healthcare funds, buoyed the upcoming debut of the exchanges mandated by President Barack Obama's healthcare law, jumped 4.38% in September (17.37% year-to-date). Emerging-markets funds also enjoyed a strong month after the Federal Reserve maintained its bond-buying levels, rising 3.26% on the month (2.07% YTD). Latin America funds were especially strong, adding 3.7% (down 5.36% YTD), followed by Russian and Eastern European funds at 3.24% (1.2% YTD) and Asia ex-Japan funds at 3.22% (3.3% YTD).

"Hedge funds were well positioned for the dynamic environment which materialized in September, from the equity gains and falling yields on the Fed no- taper decision, through the significant German elections, the healthcare stock leadership on Affordable Care Act and into the equity market selloff on the US budget deliberations into month end," HFR president Kenneth Heinz said. "Equity hedge and event-driven funds are on pace for the strongest gains since 2009 and these continue to attract investor interest through the evolving macro political environment."

Energy and basic materials rose 2.85% on the month (0.94% YTD), equity hedge 2.61% (9.17% YTD), event-driven 1.99% (8.98% YTD), quantitative directional 1.45% (6.85% YTD), relative-value 1.44% (5.05% YTD), distressed and restructuring 1.31% (9.4% YTD), multi-strategy 1.28% (5.82% YTD), convertible arbitrage 1.07% (6.46% YTD), merger arbitrage 0.9% (3.36% YTD) and equity-market neutral 0.42% (3.69% YTD).

Short-bias funds took the biggest hit in September, dropping 2.59% (down 13.61% YTD). Systematic diversified funds fell 0.45% (down 3.45% YTD) and macro funds 0.19% (down 2.09% YTD).

The HFRI Fund of Funds Composite Index added 1.91% in September and is up 5.56% on the year.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.