Hedge Funds Up 1.65% As Stock Funds Rally

Oct 15 2013 | 9:49am ET

Hedge funds rose 1.65% in September as directional equity funds rode the rising stock market.

eVestment's Hedge Fund Aggregate is up 5.7% on the year, badly lagging the Standard & Poor's 500 Index, which is up 19.8% after adding 3.14% last month.

Stock funds drove the industry's gains, returning 2.65% in September (9.58% year-to-date). Long/short equity funds were up 2.95% (10.59% YTD), with technology funds adding 3.34% (8.82% YTD), small- and micro-cap funds 3.28% (13.99% YTD), energy funds 3% (9.03% YTD), financials funds 2.88% (11.55% YTD) and healthcare funds 2.42% (19.48% YTD).

Event-driven and distressed funds rose 1.91% on the month (8.48% YTD), multi-strategy funds 1.78% (2.32% YTD), equity-market neutral funds 0.98% (4.4% YTD), directional credit funds 0.83% (5.33% YTD), macro funds 0.35% (0.08% YTD) and relative-value credit funds 0.31% (3.1% YTD). Managed futures funds shed 0.67% in September (down 3.63% YTD) as commodity strategies dropped 1.15% (down 4.84% YTD).

Regionally, hedge funds focused on India cleaned up in September, jumping 9.52% to cut their year-to-date loss to 13.75%. Japanese funds rose 5.21% (27.51% YTD), Brazilian funds 5.18% (down 1.38% YTD), emerging Europe funds 3.47% (down 2.13% YTD) and African and Middle Eastern funds 3.45% (15.35% YTD).

eVestment also reported that hedge funds took in $21.45 billion in new money in August, the lion's share of the $30.32 billion in new inflows for the year. Credit hedge funds added $7.88 billion on the month and have taken in $55.26 billion on the year, while stock funds cut their 2013 net outflow to $6.27 billion with $6.31 billion in net inflows in August.

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