Hedge funds outperformed underlying markets in September with the Eurekahedge Hedge Fund Index returning a flat 0%, while the MSCI World Index finished the month down 1.86%.

Read: What to do when the bull market ends

On a year-to-date basis, hedge funds are up 3.87%, falling just slightly behind underlying markets as the MSCI World Index returned 3.99% over the same period.

Here are some key takeaways.

  • Redemption pressure builds up in hedge funds following three consecutive months of net asset outflows as investors withdrew US$13.3 billion from global hedge funds in Q3 2014.
  • CTA/managed futures funds reported the biggest gain of 2.47% in September, bringing their year-to-date returns up to 6.54%, the highest out of all strategic mandates.

Read: Why China’s headed for growth

  • Japanese hedge funds were the only developed country mandate to post a gain during the month, reporting their fifth consecutive month of gains, beating the benchmark Nikkei 225 index by almost 3.5% year-to-date.
  • Latin American managers suffered losses of 2.03% during the month, though outperforming the MSCI Latin America Index which fell 7.74%.
  • India focused hedge funds posted their eighth consecutive month of gains, up 2.62% in September and 30.88% year-to-date.

Read: Hedge funds rebound in August

  • Eastern Europe and Russia investing funds were down 4.08% in September, and down 11.57% year-to-date – the worst performer among all regional mandates.
  • Distressed debt strategies posted a loss of 2.24% in September, their biggest monthly loss in the past three years.

Originally published on Advisor.ca

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