Thu, Oct 28, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Volatile markets take a toll on hedge fund performance in September

Wednesday, October 13, 2021
Opalesque Industry Update - Aggregate performance for the global hedge fund business dipped into negative territory in September, at -0.55%, according to the just-released eVestment September 2021 hedge fund performance figures. This is only the second month this year the industry posted negative aggregate returns and just under 40% of funds eVestment tracks posted positive returns last month, the lowest level since September of last year. Year to date (YTD) hedge fund industry performance stands at +8.85%.

"This is a dramatic change from August of this year, when more than 67% of funds reported positive returns," said eVestment Global Head of Research Peter Laurelli. "Major equity and credit markets had a bumpy month in September and that clearly took a toll on the hedge fund business. The dispersion of returns in September was the largest since March of this year, which means there were still many funds within various segments and categories we track that performed well during the month."

Among primary hedge fund markets eVestment tracks, Commodities funds were big performance winners in September, at +1.59%. These funds' YTD performance stands at +17.93%, among the strongest performances of any type of hedge fund eVestment tracks.

Event Driven - Activist funds were the biggest performance losers in September among primary hedge fund strategies eVestment tracks, coming in at -2.75%. However, these funds are strongly in the green YTD at +19.99%. With performance at -2.28% in September, Origination & Financing funds were also poor performers among primary strategies last month. With their YTD performance at only +3.96%, Origination & Financing funds have much less wiggle room to post positive full-year performance.

Among primary markets eVestment tracks, Equity-focused hedge funds were big performance losers in September at -1.35%. These funds are still strong performers YTD, however, at +10.45%. The pain in equity markets was also felt in most of the equity fund sub-segments eVestment tracks. Funds focused on technology, financials and healthcare equities were all in the red for September, although for technology and financials only slightly. Among these sub-sectors, only Equity-Energy focused funds saw positive performance in September, at +1.85%. Equity-Energy focused funds are also among the strongest performers this year, with YTD returns standing at +22.45%.

India-focused funds were among the strongest performers in September, at +1.54%, and are the strongest performing fund segment eVestment tracks YTD at +42.97%. Conversely, Brazil-focused funds were the biggest performance loser in September, at -5.56% and YTD returns for these funds sit at -8.58%.

"While there is a lot of red in the September performance figures, the industry as a whole is doing well with year-to-date performance," said Laurelli. "It will be interesting to see what the last quarter of the year brings for the business."

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Is the SPAC boom fizzling out?, SPAC merger mania: Companies that went public via blank-check merger in Q3, SPAC marketing heavily curtailed in House Democrats' draft bill[more]

    Is the SPAC boom fizzling out? From Crunch Base: SPACs may be fizzling out. Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to

  2. Institutional Investors: Vanderbilt University endowment records 57.1% return for fiscal year, MIT endowment logs 55.5% return for latest fiscal year, AP1 re-tenders $720m emerging markets small-cap mandate, Harvard, world's wealthiest university, sees endowment soar to $53.2bn, San Francisco shifts passive equity mandate to active BlackRock ESG strategy[more]

    Vanderbilt University endowment records 57.1% return for fiscal year From Vanderbilt University's endowment returned a net 57.1% in the fiscal year ended June 30, according to a financial report on the Nashville, Tenn.-based university. The report did not provide benchma

  3. New Launches: Massar Capital launches new global discretionary strategy, White Oak closes latest direct lending fund at $1.3bn, Aterian replicates speedy fundraise to collect $830m in nine weeks, Sofinnova holds $548m final close for Capital X, Multicoin Capital targets $250m for third crypto VC fund, Tobam launches French bitcoin and blockchain fund[more]

    Massar Capital launches new global discretionary strategy Massar Capital Management has launched a new discretionary macro hedge fund strategy which aims to capitalize on directional trading opportunities across a broad set of global markets. The Massar Macro Directional is the N

  4. How Viking Global became the hedge-fund industry's hottest launch pad[more]

    From Business Insider: Since Dan Sundheim's massively successful launch of D1 Capital in 2018, there have been six more spinoffs from Viking Global that have collectively raised billions - and at least one more is in the works. Among them: Grant Wonders, 31, who launched Voyager Global this ye

  5. PE/VC: Moody's warns of 'systemic risks' in private credit industry, Sequoia to restructure itself away from traditional VC model, Modeling private equity market beta, VC investors pour money into Chinese start-ups despite regulatory crackdown[more]

    Moody's warns of 'systemic risks' in private credit industry From FT: The burgeoning private credit industry of lending to buyout groups has grown to about $1tn, but opacity, eroding standards and the difficulty in trading these slices of debt pose "systemic risks", according to rating