Liquid Alternatives Funds Drop In Sept., But Beat Broader Markets

Oct 3 2014 | 5:08am ET

Liquid hedge funds followed the broader markets into the red in September, according to a set of industry replication indices.

The Credit Suisse Liquid Alternative Beta Index fell 0.92% last month, a rare win for the benchmark against the Standard & Poor’s 500 Index, which dropped 1.6%. But on the year, it’s no contest: The S&P 500 is up 6.7% on the year, against the LAB index’s 1.83%.

Event-driven was hardest-hit in September, shedding 2% (up 0.09% year-to-date). Merger arbitrage fell 1.08% (down 4.99% YTD), followed by long/short (down 0.93% in September, up 4.64% YTD) and global strategies (down 0.43%, up 1.81% YTD).

The only LAB index in the black last month was managed futures—and it was up big, rising 4.29% to erase its year-to-date loss, leaving it up 3.15% on the year.

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