Thursday, 5 March 2015
Last updated 1 hour ago
Oct 15 2013 | 12:41pm ET
Hedge funds posted widespread gains in September but failed to match the broader markets, buoyed by a rally in stocks.
Seventeen of BarclayHedge's 18 industry indices gained ground last month. The overall Barclay Hedge Fund Index added 2.11% and is up 7.3% on the year.
"The Fed's decision to delay tapering surprised investors and drove equity prices higher through mid-month," BarclayHedge founder Sol Waksman said. "Fears over the possible failure of U.S. budget and debt-ceiling negotiations gained momentum and equity markets sold off in the second half of September, but equities remained profitable on the month as measured by a gain of 5% for the MSCI World Index."
The best-performing strategy in September—and on the year—is healthcare and biotechnology, up 4.26% on the month and 27.91% on the year. "The passage of the Affordable Care Act in the U.S., coupled with the expectation of greater demand for healthcare services due to increases in both population and life expectancy, have had a very positive impact on the sector."
Equity long-bias funds rose 3.65% in September (15.24% YTD), technology funds 3.35% (9.38% YTD), emerging markets funds 2.92%, Pacific Rim equities 2.62% (17.2% YTD) and European equities 2.03%.
Short-bias funds were the only losers on the month, dropping 3.55%. The strategy is down 19.84% on the year.
The Barclay Fund of Funds Index returned 1.33% in September (4.95% YTD).
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…