WEST PALM BEACH, FL (HedgeCo.Net) – Standard and Poor�s has released its September hedge fund index, and according to the reports, �September hedge fund performance, as measured by the S&P HedgeFund Index, was up 0.47% with all three of the sub-indices ending the month in positive territory.� The hedge fund positive returns in September were the result of the rising oil prices.
Details of the report shows that the �S&P Directional/Tactical Index finished September up 0.60% with two of its three strategy components exhibiting positive returns�. The Managed Futures strategy also posted strong positive returns for the month, up 1.59%. Managed Futures managers benefited from the spike in oil prices, caused in part by supply disruptions in supplies, along with fears of terrorism and hurricane damage to oil installations in the US gulf areas.
The S&P Arbitrage Index gained 0.44%, the index was lifted by strong performance in the Fixed Income Arbitrage sector. Justin Dew, Senior Hedge Fund Specialist at Standard & Poor’s, said, �With Fannie Mae battered by investigations into its accounting practices, many investors assumed asset-backed instruments would take a beating, not realizing that these instruments are backed by actual mortgages, not Fannie Mae equity�.
The Convertible Arbitrage sector finished flat for the month due to declining volatility and stable credit spreads. Event-Driven index showed positive gains Dew said, “In the energy sector, Special Situations managers were able to capitalize on the restructuring of a few North American oil-related companies’ accounting practices to more accurately reflect oil reserves in friendly countries versus non-friendly countries�. The equity long/short strategy produced strong returns for the month gaining 1.67%.
The S&P Hedge Fund Index is made up of nine distinct hedge fund investment strategies grouped into three broad style categories; Arbitrage, Event-Driven and Directional/Tactical. The index is constructed with forty institutional managers; its values are calculated and published daily by Standard & Poor’s.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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