Convertible Arbitrage Battered In Sept., All Strats. Lose

Oct 15 2008 | 12:33pm ET

Barring a major turnaround in the next three months, there won’t be much to cheer about in hedge fund land. Just three of the 13 strategies tracked by the Credit Suisse Index Co. are in positive ground for the year; all lost ground last month, one of the worst in the history of the hedge fund industry.

Overall, the Credit Suisse/Tremont Hedge Fund Index is down 9.87% on the year after dropping 6.55% last month.

The worst-performing strategy by far is convertible arbitrage, which plummeted 12.26% in September, leaving the strategy down 19.45% on year. Other dismal performances were turned in by emerging markets funds (down 8.93%, up 18.07% year-to-date), long/short equity funds (down 7.81%, down 13.28% YTD), fixed-income arbitrage funds (down 6.8%, down 11.57% YTD) and global macro funds (down 6.63%, down 2.07% YTD).

Managed futures funds are up 6.7% on the year after shedding 0.57% last month, the best performance of any CS index. Dedicated short bias and equity market-neutral funds are also up in 2008, at 3.4% (down 6.08% in September) and 1.67% (down 1.41% in September), respectively.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...