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

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

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note