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%.
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.
- 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.
- 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.