September’s top performance was handed in by the Hennessee Latin America Index with a return of 8.02%, driven by Argentina’s gains in auto and industrial production. Year to date the Latin America Index is 39.6% better, compared with the 13.25% year-to-date return of the broader Hennessee index, according to the Hennessee Hedge Fund Group.
The Distressed Index was September’s second best performer with a return of 2.68%, as demand for distressed securities continues to push prices up as positive economic data and increased profitability are windfalls to the asset class. Further, September’s return helped pad the index’s respectful 19.02% performance in 2003.
In third place was the Macro Index, posting a return of 2.07% for September, on many managers correctly betting against the US dollar. Year to date the index is up 14.17%.
Conversely, leading the downward charge was the Technology Index, off by 0.93% for the month, but still managing a positive 7.85% return for the year. This performance was followed by the 0.43% decline notched by the Europe Index and the previous five months’ worst performer – the Short Biased Index – was unable to escape the red ink, ending September down 0.34%.
Otherwise, the Index’s numbers outpaced the broader market indices: the S&P 500 Index was down 1.06%, the Dow Jones Industrial Average was 1.49% lower and the Nasdaq Index fell 1.30% in August. Last month, the index posted a 1.76% return by comparison (See Hedge Funds 1.76% Better In August ).