New York (HedgeCo.Net) – The Hennessee Hedge Fund Index increased +1.26% in September (+5.03% YTD), while the S&P 500 gained +2.42% (+14.56% YTD), the Dow Jones Industrial Average advanced +2.65% (+9.99% YTD), and the NASDAQ Composite Index increased +1.61% (+19.62% YTD). Bonds were also up, as the Barclays Aggregate Bond Index increased +0.14% (+4.00% YTD).

“Despite generally disappointing economic data in the US, the Fed’s announcement of additional monetary stimulus encouraged investors to increase risk tolerance and led to a market rally,” commented Charles Gradante, Managing Principal of Hennessee Group.

Highlights include:

• The Hennessee Global/Macro Index advanced +1.10% (+3.32% YTD) in September.
• International hedge fund managers posted gains, up +1.12% (+5.61% YTD).
• Emerging markets were positive gaining +5.84% (+9.41% YTD).
• The Hennessee Emerging Market Index advanced +3.57% (+2.59% YTD).
• Commodities were positive as the Dow Jones-UBS Commodity Index was up +1.70% (+5.56% YTD)
• Gold was a major beneficiary of the quantitative easing programs announced during September, increasing +7.73% (+16.00% YTD).
• The US dollar was generally weaker due to the additional stimulus, as the U.S. Dollar Index declined -1.43% (-1.65% YTD).
• The Euro strengthened +2.59% (-0.73% YTD) again the US dollar, breaking key technical levels and squeezing short positions.
• Equity long/short managers were up +1.51% (+5.13% YTD).
• The S&P 500 was up +2.42% for the month

“Hedge funds performed well in September. They were able to capture a portion of the upside due to increased net exposures. Shorting and hedging continues to be a drag on performance,” said Lee Hennessee, Managing Principal of Hennessee Group. “We are encouraged by an improvement in hedge fund performance over the last couple months. Correlations have declined, and managers are being rewarded for good stock selection.”

Alex Akesson
Editor for HedgeCo.net
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