Hedge fund managers were down 0.32 per cent in September, dragging their year-to-date return to 5.67 per cent despite the recovering investor risk sentiment, which pushed the global equity market up 2.04 per cent over the month.
The MSCI ACWI (Local) is still up 14.89 per cent as of September 2019 year-to-date.
Roughly 50.6 per cent of the underlying constituents of the Eurekahedge Hedge Fund Index posted positive returns in September, and 25.9 per cent of the hedge fund managers in the database were able to maintain double-digit returns over the first three quarters of 2019.
On an asset-weighted basis, hedge funds were up 0.28 per cent in September, as captured by the Mizuho Eurekahedge Hedge Fund Index (USD). The index was up 4.34 per cent over the first nine months of the year.
The Eurekahedge North American Hedge Fund Index edged 0.19 per cent higher during the month, as the sell-off triggered by the impeachment inquiry against President Trump was outweighed by the gains made by US equities earlier in the month. The S&P 500 was still up 1.72 per cent throughout the month.
The Eurekahedge Greater China Hedge Fund Index declined 0.90 per cent in September, in spite of the gains posted by the Hang Seng and the mainland benchmark indices over the month. The withdrawal of the extradition bill in early September provided some support for Hong Kong’s equity market, but proved ineffective in alleviating the tense situation as the protests continued to escalate.
The Eurekahedge CTA/Managed Futures Hedge Fund Index was down 1.96 per cent in September, as fund managers suffered from the decline in precious metal prices. The vacillant intra-month movement in the energy sector following the drone attack on Saudi oil facilities produced mixed results, with some managers posting gains from the oil price spike, and others losing from the subsequent decline.
Fund managers utilising AI/machine learning strategies posted their third consecutive month of losses, as they slumped 1.24 per cent in September. On a year-to-date basis, the Eurekahedge AI Hedge Fund Index is still up 1.06 per cent.
The Eurekahedge Crypto-Currency Hedge Fund Index was down 10.64 per cent in September, outperforming Bitcoin which ended the month down 15.69 per cent. Fund managers focusing on crypto-currencies are up 29.39 per cent over the first three quarters of 2019, which compares to the 109.17 per cent year-to-date gain posted by Bitcoin.