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Asia ex-Japan hedge funds down over 6 per cent in September

October 13, 2011
- 6:55 pm

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September concluded what has been one of the worst quarters for hedge funds since 2008.

September concluded what has been one of the worst quarters for hedge funds since 2008. According to Hedge Fund Research, its HFRI Fund Weighted Composite Index fell 2.81 per cent to leave it down 4.74 per cent for the year. Practically every strategy ended September in the red, with energy-focused equity funds and emerging market funds shedding over 9 per cent and 7 per cent respectively. Figures for the HFRI Emerging Markets: Asia ex-Japan Index show that funds there lost over 9 per cent to put them in the uncomfortable territory of being down 16 per cent YTD. Eurekahedge, by comparison, estimates that Asia ex-Japan fared slightly better, losing -6.7 per cent to leave them down 11 per cent for the year. Having returned +10 per cent in 2010, Asian hedgies have a long way to go to turn things around over the final quarter.

Greater China funds lost 7.9 per cent but those in Japan only lost 0.53 per cent: China’s CSI 300 Index plummeted 9 per cent in September alone and is now down 19 per cent for the first nine months of 2011 as equity markets continue to take a hammering. Within the Asia ex-Japan complex, CTA funds managed to exploit emerging market dislocations to gain 0.14 per cent. Event-driven and equity l/s funds predictably suffered last month, losing 7.8 per cent and 7.69 per cent respectively. That means equity l/s funds are down nearly 13 per cent this year. Fixed income funds also felt the pinch, falling 5.5 per cent last month. All in all, a rather turgid Q3 for the hedge fund community.

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