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In the week ending October 11th 2024, HFR reported that Event-Driven hedge funds led strong, industry-wide gains in September; Macro strategies also advanced in September, reversing four consecutive monthly declines as interest rates fell. The HFRI Fund Weighted Composite Index (FWC) gained +1.2 percent and the HFRI Asset Weighted Composite Index added +1.4 percent for the month.

Hedge fund performance dispersion expanded in September, as the top decile of the HFRI FWC constituents advanced by an average of +8.9 percent, while the bottom decile fell by an average of -4.1 percent, representing a top/bottom dispersion of 13.0 percent for the month. Approximately seventy percent (70%) of hedge funds produced positive performance in September.

Aside from event-driven hedge funds, which often focus on out-of-favour, deep value equity exposures and speculation on M&A situations and which led strategy gains in September 2024 (almost 8% YTD) as the US Federal Reserve lowered interest rates, some other strategies have been doing well too.

Equity Hedge (EH) funds, which invest long and short across specialized sub-strategies, posted strong performance for September as the HFRI Equity Hedge (Total) Index advanced an estimated +1.2% to bring the YTD return to +10%. EH sub-strategy gains were led by the Fundamental Growth Index and the Multi-Strategy Index.

In new launches, LGT Capital Partners (LGT CP) has launched a new hedge fund vehicle for institutional and wealth management clients; CPR Asset Management, a subsidiary of Amundi, has launched an investment strategy dedicated to AI, and the German investment outfit Lennertz & Co. is set to become one of the largest funds of funds operating in the blockchain space......................

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