Morningstar: Hedge Funds Up 3.1% In Sept.

Oct 21 2009 | 12:56pm ET

Hedge funds soared in the third quarter, topped off by a 3.1% return in September, according to Morningstar.

“Paced by an exceptionally strong September, hedge funds began to regain their swagger in the third quarter,” said Nadia Papagiannis, Morningstar alternative investments strategist. “The road to recovery for hedge funds was paved by strong performance in riskier asset classes such as emerging markets, distressed, and small-cap securities.”

The Morningstar 1000 Hedge Fund index is up 17.22% this year, and all but two of the data provider’s strategy indices were in the black last month. But the average hedge fund is still below its high-water mark: The Morningstar index dropped 25.2% through February, and is up only 20% since then. That leaves 11.4% to go before the average fund has returned to its pre-crisis level.

Distressed securities funds did best in September, which returns of 6.65% and 12.3%, respectively. Emerging markets equities funds are the best-performing strategy on the year at 41.79%, after returning 6.48% last month.

Other strong September performances were posted by U.S. small-cap equity funds (4.97% in September, 30.68% year-to-date) and emerging markets funds (4.62%, 30.96% YTD).

The only losing strategies in September were short equity funds (down 1.55%, up 2.18% YTD) and Japan funds (down 1.15%, up 9.75% YTD).

Funds of hedge funds rose 2.1% on the month and are up 11.56% on the year.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.