Key Takeaways
- • Hedge funds fell 3.2% in September 2011, according to the Bloomberg aggregate hedge fund index, the steepest monthly decline since May 2010, when the index dropped 4.3%.
- • Strategies with exposure to fixed-income and equity markets generated negative returns across the board, per Don Steinbrugge, managing partner of Agecroft Partners LLC.
- • Steinbrugge described September as one of the worst months since 2008, underscoring the stress facing hedge fund managers navigating current markets.
- • Global macro strategies were a notable exception, performing strongly for a small group of standout managers.
Summary
Hedge funds fell 3.2% in September 2011, according to the Bloomberg aggregate hedge fund index, marking the weakest month for the sector in over a year. The decline was the largest since May 2010, when the same index fell 4.3%.
Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors, told Bloomberg that any strategy exposed to fixed-income and equity markets generated negative returns during the month. He characterized September as one of the worst months since 2008 and noted the considerable stress hedge fund managers face in navigating current market conditions.
The losses were broad-based across strategies tied to traditional fixed-income and equity exposure. Global macro strategies were a clear exception, with a handful of leading managers posting strong performance during the period, according to the report.
Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors, told Bloomberg that any strategy exposed to fixed-income and equity markets generated negative returns during the month. He characterized September as one of the worst months since 2008 and noted the considerable stress hedge fund managers face in navigating current market conditions.
The losses were broad-based across strategies tied to traditional fixed-income and equity exposure. Global macro strategies were a clear exception, with a handful of leading managers posting strong performance during the period, according to the report.
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