Like most hedge funds, Asia Genesis Asset Management’s Japan Macro Fund lost ground in September.  But with a loss of just 1.8%, the fund’s managers couldn’t be happier.

The average hedge fund fell by more than twice as much, with Asia-focused hedge funds taking a particularly big hit. With last month’s narrow loss, the US$745 million vehicle has returned 9.3% on the year.

The Singapore-based firm struck on a winner last month by selling U.S. Treasuries and buying Japanese government bonds, according to Bloomberg News.

“September actually was the worst month for the fund this year, though on a relative basis we did okay,” fund manager Chua Soon Hock told Bloomberg. “We realized our macro long Hang Seng and short JGB positions were wrong as the credit crisis worsened. As such, we reduced, mitigated and reversed some positions.