Bailey McCann, Opalesque New York: Q3 hedge fund returns were negative, marking the industry's first quarterly decline since Q2 2013 according to the latest hedge fund data from eVestment. Emerging markets saw losses more than twice that of developed markets. Declines from funds investing in Brazil were significant, their largest since September 2011.
On a strategy basis, losses from credit funds in September were the highest since October 2008 and indicate elevated exposures to Europe and high yield credit globally. Activist fund returns were also negative, but were supported by a few large gainers in September. The group remains the industry's best performing sub-strategy in 2014.
Having faced persistent redemptions over the last two
years, managed futures funds had an excellent
September, returning an average of 2.07%. The strategy
was by far the best performer in Q3 and sits behind only
distressed and activist strategies as industry leaders in
2014.
Macro strategies were positive in September, returning
0.49% for the month and 0.64% in Q3, in what should be
considered a successful quarter for the group. Prior to
Q3, the universe had underperformed directional equity
strategies in each of the last eight consecutive quarters.
Event driven funds have taken in more assets than any other strategy in 2014. Though the group declined in September and Q3, YTD they are ahead long/short equity, multi-strategy, and both directional and relative value credi...................... To view our full article Click here
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