New York (HedgeCo.net) – The Dow Jones Credit Suisse Hedge Fund Index finished down 3.20% in September compared with a drop of 9.88% for the Dow Jones Global Index.
A new monthly commentary offers insight into hedge fund performance through the month of September. Some key findings from the report include:
- Uncertain market conditions benefitted Dedicated Short Bias – the only sector to post positive performance for the month;
- Long/Short Equity managers saw declines, although the sector fared better than broad equity markets, with the Dow Jones Global Index down 9.88% in September, and 18.19% in Q3;
- Tactical strategies, such as Global Macro and Managed Futures, were generally able to withstand the volatile market conditions by maintaining relatively low long exposure or some short exposure to equities; and
- Relative value strategies, such as Multi-Strategy, Convertible Arbitrage and Fixed Income Arbitrage generally experienced mark-tomarket portfolio losses. However, sufficient market liquidity, low leverage and generally defensive positioning have helped managers avoid the pitfalls experienced in 2008.
