Tue, Dec 6, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund managers return -0.44% in September

Wednesday, October 27, 2021
Opalesque Industry Update - Hedge fund managers returned -0.44% in September, outperforming the global equity market as represented by the MSCI ACWI (Local) which returned -3.55% during the month. In terms of 2021 performance, global hedge funds were up 8.14%, recording the strongest September year-to-date return since 2009 despite the ongoing pandemic. Around 76.7% of the constituents of the Eurekahedge Hedge Fund Index generated positive returns in 2021.

On an asset-weighted basis, hedge funds returned -0.79% in September, as captured by the Eurekahedge Asset Weighted Index - USD. In terms of 2021 performance, the index is only up 3.18%, highlighting the struggles for some of the larger asset managers over the year.

The Eurekahedge North American Hedge Fund Index returned -0.12% in September, outperforming the pan-European Euro Stoxx 50 which returned -3.53%. Market risk sentiment was dampened due to the developing energy crisis in Europe and the heightened political uncertainty post-Germany elections. On a year-to-date basis, European fund managers were up 7.63%, recording their best September YTD performance since 2009.

The Eurekahedge Japan Hedge Fund Index gained 2.62% in September, supported by the robust returns of the Nikkei 225 which returned 4.85%. Investor sentiment was supported by the hope for a more dynamic and business-friendly government after Prime Minister Yoshihide Suga resigned amid anger over his government's handling of the COVID-19 pandemic. On a year-to-date basis, Japanese fund managers were up 10.11%, recording their best September YTD performance since 2013.

The Eurekahedge Distressed Debt Hedge Fund Index gained 0.92% in September, extending their streak of consecutive positive monthly returns to twelve months. On a year-to-date basis, distressed debt hedge funds outperformed all of their main strategic peers and were up 13.06%, recording their best September YTD performance since 2009.

The Eurekahedge Commodity Hedge Fund Index gained 3.05% in September, supported by the strong return of the S&P GSCI Index which returned 6.03%. Energy was the best performing component in September, posting a return of 11.60% as Brent Crude Oil and West Texas Intermediate Crude Oil surged 9.52% and 9.91% respectively after OPEC+ decided to keep supplies tight despite the ongoing global energy crunch. On a year-to-date basis, commodity hedge funds were up 13.12%, recording their best September YTD performance since 2006.

The CBOE Eurekahedge Long Volatility Hedge Fund Index gained 0.97% in September. Concerns over rising inflation and the China Evergrande debt crisis spurred market volatility, causing a 40.41% surge in the CBOE Volatility Index which supported the performance of long volatility funds. On a year-to-date basis, long volatility hedge funds are still down 7.04% as the index generated negative returns in seven of the first nine months of the year.

Fund managers focusing on cryptocurrencies returned -8.80% in September as tracked by the Eurekahedge Crypto-Currency Hedge Fund Index, outperforming Bitcoin which returned -11.61% over the same period. In terms of 2021 return, cryptocurrency hedge funds have gained 117.42%, outperforming Bitcoin which returned 44.39% over the first nine months of the year.

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. Opalesque Exclusive: Marks delves into what really matters[more]

    B. G., Opalesque Geneva: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, weighs what should and should not matter for investors in his latest memo last week. Among the things t

  2. Legal: British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m, DOL slams lawsuit seeking to overturn crypto guidance[more]

    British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m From Offshore Alert: Four days before a trial was due to start in the Cayman Islands, British fund manager Jeremy Leach and eight of his firms settled a fraud complaint by agreeing to pay $11.5 million o

  3. Family offices upbeat on private assets, reduce public assets exposure[more]

    Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study. According to the survey findings by German digital private equity firm Moonfare, and the

  4. Opalesque Exclusive: A Swiss managed futures strategy that can offer diversification to any portfolio[more]

    B. G., Opalesque Geneva for New Managers: TARO (R) Diversified is a Swiss algorithmic and systematic investment strategy that offers diversification benefits to almost any professionally managed portfolio through it

  5. Alts manager Medalist Partners acquires a minority stake in Semper Capital to tap opportunities in structured credit[more]

    Laxman Pai, Opalesque Asia: Medalist Partners, which specializes in private credit, has acquired a minority stake in Semper Capital to extend its offerings to the mass market. Medalist currently manages approximately $2.2 billion in assets across strategies in asset-based private credit, struc