The average hedge fund industry performance was +0.73 per cent in September, marking eight months of positive aggregate industry returns for the industry.
That’s according eVestment’s September 2016 Hedge Fund Performance Report.
Overall Q3 performance came in at +2.91 per cent in Q3 and year-to-date hedge fund returns stand at +4.40 per cent.
Among strategies, origination and financing funds (+1.65 per cent), activist funds (+1.29 per cent), distressed funds and long/short equity funds (both at +1.05 per cent) turned in the strongest performances in September. Activist funds won the quarter at +4.87 per cent and distressed funds won in YTD returns among major strategies with +7.99 per cent returns.
The managed futures segment may be facing a difficult stretch for investor flows in Q4. The universe accepted more money than any other through August, and its asset collection was behind only multi-strategy managers in 2015. September and Q3 performance trailed the industry, and several large funds are in the midst of a difficult stretch.
Macro hedge fund performance was similarly distributed to managed futures in September, basically half posting gains versus losses, however the universe produced slightly positive returns at +0.16 per cent for the month and +2.41 per cent YTD.
Commodity funds enjoyed a welcome reprieve in September from a two-month slide causing losses near 2 per cent. The rebound in agricultural commodity prices along with rising energy prices were the primary cause for universally positive returns.
Brazil fund returns cooled off a bit in September, coming in just positive at +0.21 per cent in September, but ended Q3 climbing +6.88 per cent as the universe continues to be the best performing segment of the hedge fund industry in 2016. YTD Brazil funds stand at +36.54 per cent.
Funds investing in Russia continued to perform well in September, resulting in Q3 returns over 10 per cent and YTD returns over 20 per cent.
China funds’ rebound continued in September resulting in strong Q3 returns. The recent positive run has not been enough yet to offset the large losses from January. Flows for China funds, at least through August, have not shown yet that investors are prepared to return to China-focused exposure, the report says.
