Hedge funds saw overall negative returns for the second month in a row in September and ended the quarter slightly negative, underperforming both the S&P 500 and a fund tracking 50% stocks and 50% bonds from around the globe, per eVestment data released Wednesday.
The big picture: Diversity within hedge funds continued to be a major theme, as fixed income and credit funds delivered positive gains last month, but broad financial derivatives funds returned losses of nearly 4%, dragging down the overall industry figures.
- Size was a major diversifier again, with the 10 largest hedge funds generating solidly positive returns, and the 10 largest long/short funds turning in the best overall performance by size during the month.
Of note: Russia and China-focused funds have been the best performing funds of all types tracked by eVestment so far this year, delivering returns of nearly 16% and 15%, respectively.
Go deeper: The hedge fund moment is over