Opalesque Industry Update - Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index (“Broad Index”) will post its best year-to-date performance in September, gaining 3.23% for the month (based on 87% of assets in the index reporting).|
Key highlights for the month:
- Hedge funds experienced their best month year-to-date in September as the Dow Jones Credit Suisse Hedge Fund Index rose an estimated 3.23%. Nine out of the 10 sectors posted positive performance this month as a result of global market rallies. The industry is up 5.78% for the year, outperforming global markets, as represented by the Dow Jones Global Index, which have posted gains of 2.89% year-to-date.
- Equity focused managers experienced positive performance this month due to global equity market rallies. Long/Short Equity managers posted their biggest gain since May of 2009, finishing up 4.50% for the month. Managers with high net exposures led performance and many funds increased their market exposures as the month progressed. Equity Market Neutral funds gained 4.30% as market correlations dropped from their record highs managers and managers capitalized on short term price reversals.
- Emerging Markets funds were also among the top performers this month finishing up 4.68%. Performance in the space was largely led by equity-focused managers which benefited from market rallies in emerging Asian and Latin American markets. FX positions also contributed positively to the month’s gains.
- The Event Driven sector also finished in positive territory as increasing investment opportunities began to arise around special situations. All three sub-sectors performed well this month with Risk Arbitrage up 3.88% driven by the recent increase in M&A activity.
- Global Macro was up an estimated 2.63% as managers increased their risk exposures in the FX markets and seized opportunities in the commodities space. Many managers with long AUD positions were able to capture significant gains as the Aussie rallied to an all time record high.
Full performance table available: Source