Investing October 9, 2001

Hedge Funds Fare Well In Rough September Markets

October 9, 2001 (PLANSPONSOR.com) - Preliminary estimates show the Average U.S. Hedge Fund fell 2.3% net in September, according to Steven A. Lonsdorf, CEO of Van Hedge Fund Advisors International, Inc., a global hedge fund advisory firm.
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That’s better than major US stock indexes performed for the month. For the year-to-date through September, the Average U.S. Hedge Fund is estimated to be down just 0.2%, according to Lonsdorf, whereas major US stock indexes are all down in double-digits.

Lonsdorf notes that over 85% of the hedge funds reporting for the preliminary index outperformed the S&P 500 in September, and over 36% posted positive returns.

In the wake of the recent market tumult, short selling strategies are faring best, while market neutral strategies also appear to be performing well. Market timing managers who were able to move quickly to cash also did well, according to Lonsdorf.

Final September performance for U.S., Offshore and Global hedge funds, by strategy, will be released later this month.

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