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FAIRFIELD, Iowa, October 18, 2011 – Most hedge fund strategies had losses in September, evidenced by a 3.92% drop in the Barclay Hedge Fund Index compiled by BarclayHedge. The Index has lost 7.45% in the 3rd quarter and is now down 6.53% in 2011.
“For the second straight month we’re seeing the largest hedge fund losses since the 2008 meltdown,” says Sol Waksman, founder and president of BarclayHedge.
“Equity markets, driven by fear-based liquidation, dropped precipitously. Double-dip concerns drove the S&P 500 to a 7 percent loss, the MSCI Europe Index gave up 11.1 percent over the uncertainty of resolution of its sovereign debt issues, and the Hang Seng Index lost more than 15 percent as the Chinese economy appeared to slow.”
Overall, 16 of Barclay’s 18 hedge fund indices lost ground in September. The Emerging Markets Index fell 7.61%, Equity Long Bias Index dropped 6.13%, the Event Driven Index lost 3.91%, Healthcare & Biotechnology gave up 3.54%, Distressed Securities lost 3.33%, and the Pacific Rim Equities Index was down 3.18%.
The Barclay Equity Short Bias Index jumped 8.05% in September, following a 7.03% gain in August. The Equity Short Bias Index is up 14.34% year-to-date.
“Short sellers once again were able to capitalize on the lack of confidence that current economic concerns can be resolved in a timely and effective way,” says Waksman.
The Barclay Fund of Funds Index lost 2.78% in September, and is down 5.78% year-to-date.
“After several off years, funds of hedge funds successfully demonstrated their ability to use diversification to contain downside risk and outperform hedge funds in a down market,” says Waksman.
Click here to view five years of Barclay Hedge Fund Index data, or download 13 years of monthly data.
Sol Waksman is an experienced media source, providing perspectives on hedge fund and managed futures trends. For more commentary or background, call 641-472-3456 or email swaksman@barclayhedge.com.
BarclayHedge was founded in 1985 and actively tracks more than 6,100 hedge funds, funds of hedge funds, and managed futures programs. Each month Barclay provides updated performance rankings for 38 Hedge Fund categories, 16 CTA categories, and 7 UCITS categories.
Institutional investors, brokerage firms, and private banks worldwide utilize BarclayHedge indices as performance benchmarks for the hedge fund and managed futures industries.
