Hedge Funds Bounce Back in September
Despite posting negative returns of 1.5% in August, hedge funds bounced back last month. Net of fees, hedge fund strategies generated returns of 2.98% in September, according to industry data group Hedge Fund Research (HFR).
Investment News reports that HFR President, Ken Heinz, attributes the overall rebound to investment strategies focused on emerging markets and Asia. The Hedge Fund Research investable index showed that six of the eight hedge fund strategies it details made a profit in September. Topping the list: Global/macro and managed futures with a 3.24% return. Managed futures is a hedge fund style that invests in futures and currencies on a global basis. Meanwhile, global/macro hedge fund strategies seek to capitalize on country, regional or economic change affecting securities and commodities as well as interest and currency rates.
Hennessee, a New York-based investment adviser, says that international markets continue to outperform the U.S. thanks to the dollar’s decline against most currencies and the outstanding performance of emerging markets. Emerging markets-focused hedge funds posted an average return of 4.91% last month, or 20% year to date. Asia funds saw a return of 5.23%, or 30% year to date.
Convertible arbitrage came in second with a gain of 2.34%. The losers: equity market neutral funds were down 1.48% in September, and distressed securities funds were down 0.62%.
