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Opalesque Industry Update - The latest 'Early View’ from FRM, Man Group’s $19.5 billion fund of hedge funds and managed accounts business, finds that September wasn’t too hard on hedge funds with the sector posting positive performance over the month as the HFRX Global Hedge Fund Index rose 0.4% (as at 28 September). The report says: "There was an uptick in risk levels across both discretionary and systematic strategies following the ECB announcement on 6 September. The increase was, however only slight, e.g. the average margin-to-equity ratio for medium to longterm Managed Futures increased from 15% mid-month to 17% by the end of the month."

A differentiator for performance was the degree of market beta for both Equity and Credit managers. "In Equity Long-Short, long bias managers tended to outperform despite giving back some gains towards month-end" the report says. "The early data for September suggests that the slight increase in risk levels differed by region with US managers typically increasing gross and net exposures more than their European counterparts. In terms of positioning, managers generally lifted their shorts as the month progressed and added to core longs."

FRM believes that credit managers are likely to end the month in positive territory. "The best returns, that we have noted so far, come from Structured Credit managers who benefitted from the amalgamation of positive technical......................

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