It was another positive month for the global hedge fund industry as markets saw their 11th consecutive month of aggregate gains in September, returning an average of +0.67%, while developed markets finally outperformed emerging markets, according to the just-released September 2017 eVestment Hedge Fund Performance Report.
Overall, more than 75% of the industry is in positive return territory for 2017, with average gains being over 10%. Interestingly however, the largest funds, including the 10 largest, are dragging the rest down, posting the lowest returns in September and year-to-date (YTD). Contributing to this lag is the fact that fewer than 20% of the managed futures strategies at the largest firms are returning over 5%.
Some other interesting themes to note:
- September marked the 11th straight month of aggregate gains, with Q3 returns coming in at +2.32%. The industry has returned +5.92% YTD.
- Activist investors are continuing to gain clout, leading the non EM-focused industry in 2017 by nearly 10%.
- Brazil continues to be one of the most promising emerging markets performers of 2017, with nearly equal exposure to India fund performance and closing in on China for YTD performance.
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