The Eurekahedge Hedge Fund Index was down 0.32% in September, in spite of the recovery exhibited by the global equity market as represented by the MSCI ACWI (Local), which ended the month up 2.04%.
The resumption of the US-China trade talks and the withdrawal of the controversial Hong Kong extradition bill provided support for the two regions’ equity markets early into the month.
Toward the end of the month, the impeachment inquiry against the US president Donald Trump wiped a portion of the gains posted by US equities, sending the S&P 500 down 1.01% through the week ending 27 September.
The global bond markets saw yields decline over the third quarter of the year, as major central banks adopted accommodative stances and reduced rates. The ECB announced new stimulus measures in September, including the resumption of the asset purchases, while the Fed decided to cut their rate for a second time this year in September.
Returns were positive across geographic mandates in September, with fund managers focusing on emerging markets up 1.20%, outperforming their North American and European peers who were up 0.19% and 0.10% respectively.
Japanese hedge funds gained 1.50% over the month of September, owing to the weakness of the yen, which sent the Nikkei 5.08% higher. Across strategies, macro and CTA/managed futures fund managers were down 0.40% and 1.96% respectively throughout the month, while long/short equities fund managers benefited from the recovering equity markets and returned 0.18%.
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