According to Credit Suisse First Boston Tremont Index LLC, the September index bumped up 0.08%, compared to an 0.85% hike in August (See Hedge Funds Bounce Back in August ).This follows drops of 0.84% in June and 1.35% in July.
Hedge funds outpaced all three broad equity markets. The Dow Jones Industrial Average dropped 12.37%, Nasdaq shed 10.86% while the S&P fell 11% during the month.
The top performing hedge strategy during September was dedicated short bias with a strong 8.10% increase over the month – following a 1.58% decrease in August and a 21.37% increase year to date.
Next was managed futures, which came in at a 4.11% gain. That follows an August hike of 3.36% and a year-to-date gain of 20.63%, CSFB Tremont reported. Managers of this strategy invest in listed financial and commodity futures markets and currency markets around the world.
Biggest loser in September was emerging markets which gave up 1.98% over the month, after gaining 1.26% in August.
Year to date, the index is up 0.90%. That compares to a whopping 39.91% loss for Nasdaq, a 28.99% giveback for the S&P 500 and a 24.24% drop for the Dow Jones.
The CSFB Tremont Hedge Fund Index comprises 383 funds as of September 1 and is constructed using the TASS database of over 2,600 hedge funds. In order to qualify for the inclusion in the index selection universe, a fund must have $10 million under management, a 12-month track record, and an audited financial statement.