By Warren S. Hersch
rose in value an average of 1.7 percent in September, ending the third quarter up 2.4 percent, according to a third quarter 2013 report from eVestment on hedge fund performance.
The report reveals that hedge funds returned an average of 5.7 percent though the first nine months of 2013. On an annualized basis, the industry is on pace to return 7.7 percent in 2013, slightly ahead of 2012’s 7.2 percent.
“September’s returns reflected the year-long trend of directional equity strategies outperforming the rest of the hedge fund industry on the back of the developed market strength,” the report states. “Long-short equity funds are on track to post their best year since 2009 and second best since 2006, when they returned 26.7 percent and 15.3 percent, respectively. In both those years, the universe outperformed the S&P 500.
The following is a recap of aggregate hedge fund performance through September 2013:
|Sept.||Q3 2013||YTD 2013||2012
|Hedge fund aggregate||1.65%||2.43%||5.70%||7.21%
|S&P 500 Total Return||3.14%||5.25%||19.80%||15.98%
|Large funds (> $1b||1.14%||1.89%||5.19%||15.98%
|Mid-size funds (<$1b, >$250m||1.28%||1.76%||4.85%||7.26%
The report adds that systematic hedge fund strategies were flat during the month of September and the group yielded negative performance for the year. The hedge fund industry, with systematic strategies removed, is on pace for an annualized return of more than 11 percent.
The survey observes also that hedge funds focused on Africa and the Middle East have outperformed their peers, returning an average of 15.4 percent for the year. Indian funds, however, dipped 13.8 percent.
The total of emerging market funds fell an average of 26.2 percent in 2011 and 56.6 percent in 2008.
Originally published on LifeHealthPro.com