New Dow Jones Credit Suisse Hedge Fund Index Commentary Offers Insight Into September Hedge Fund Performance

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The Dow Jones Credit Suisse Hedge Fund Index finished down 3.20% in September compared with a drop of 9.88% for the Dow Jones Global Index. A new monthly commentary offers insight into hedge fund performance through the month of September. Some key findings from the report include:

- Uncertain market conditions benefited Dedicated Short Bias – the only sector to post positive performance for the month;

- Long/Short Equity managers saw declines, although the sector fared better than broad equity markets, with the Dow Jones Global Index down 9.88% in September, and 18.19% in Q3;

- Tactical strategies, such as Global Macro and Managed Futures, were generally able to withstand the volatile market conditions by maintaining relatively low long exposure or some short exposure to equities; and

- Relative value strategies, such as Multi-Strategy, Convertible Arbitrage and Fixed Income Arbitrage generally experienced mark-to­-market portfolio losses. However, sufficient market liquidity, low leverage and generally defensive positioning have helped managers avoid the pitfalls experienced in 2008.

The full report includes an overview of September hedge fund performance, in-depth commentary on individual hedge fund sectors and hedge fund return dispersion statistics for each strategy.