Global hedge fund industry performance dipped negative in September, with overall industry returns at -0.17% last month, according to the latest eVestment data. This brings Q3 returns to just barely positive at +0.30% and year to date (YTD) returns to +0.53%. This is a far cry from the industry’s aggregate return of +8.92% for 2017 and, in a generally strong investment market, may re-ignite concerns about the hedge fund industry.
Some highlights from the latest data include:
- Among primary strategies, Distressed funds were the big winners in September. These funds had returns of +0.84%, bringing YTD returns to +4.92%, putting Distressed funds at the top in returns among primary strategies.
- Origination & Financing funds are another bright spot for the year. While these funds’ September returns were only +0.28% last month, YTD returns for the strategy stand at +4.33%.
- On the flip side, Event Driven – Activist funds were the worst performers among primary strategies, at -2.14%. bringing YTD returns down to -2.38%.
- Russia-focused hedge funds surprised in September with positive returns of +3.75%, although September’s positive results weren’t enough to make up for negative returns for the quarter and the year.
- India-focused funds continued to disappoint after a stellar 2017 (when these funds returned +32.87%). In September, India-focused fund returns were negative at -11.68%, with YTD returns at -20.84%.
- China-focused also continue a negative run this year, with September returns at -2.16% and YTD returns at -9.48%. This is also a far cry from China-focused funds’ huge returns of +34.74% in 2017.
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