Hedge funds are expected to maintain their positive performance through September, reaching 2.67 per cent for the month, according to the Credit Suisse/Tremont hedge fund index.
Emerging market funds experienced the best returns for the month, recording 4.48 per cent, a major jump over August returns of 1.06 per cent thanks to equity market gains, including a 15 per cent jump in the Dow Jones Index, as well as expanding manufacturing output and stabilising economic activity. That rally also helped long/short equity market managers reach 3.35 per cent during September.
Convertible arbitrage and managed futures also experienced good returns, posting 3.33 per cent and 3.23 per cent respectively.
The performance of mortgage related bonds, corporate bonds and swap spread trades lent to the positive performance of the fixed income arbitrage and event-driven sectors.
However, dedicated short bias funds worsened significantly during the month, dropping to negative 5.53 per cent for the month from negative 1.69 per cent in August.
