New York- (HedgeCo.net) – The HedgeCo.net Hedge Fund Aggregate Index showed an average annual return of -2.69% through September 2011, compared to the S&P500 which showed an average of 0.85%.
While equities markets improved in September, the sovereign debt problems remained a key stressor and volatility continued to be high.
Global exposure to the situation in Europe has continued to weigh on market participants.
“Professional investors and traders are finding it difficult to navigate these choppy markets,” Evan Rapoport, CEO of HedgeCo Networks, LLC., said. ”It’s almost impossible to model out and trade successfully as markets are hanging on the words of politicians globally, rather than actual economic data.”
“As we approach the holiday season, markets should stabilize, but we have definitely seen that the economic climate can and does shift from hour to hour. Overall, the hedge fund space comprises strategies that struggle during volatile times or thrive during market volatility.” Rapoport concluded.
Some of the key findings include:
- The HCN Aggressive Growth Index showed monthly gains of 1.40 in September and +8.95 YTD.
- With 8.58% the HCN Long Only Index ranked the second highest with YTD return of 1.16%.
- The HCN Multi-Strategy Index was down -3.44% in September.
- The HCN Long Only index scored the lowest, with -8.40% in September 2011.
- The HCN Emerging Markets Index ranked the second lowest at -7.23% in September.
About The HedgeCo™ Hedge Fund Index
The HedgeCo.Net (HCN) Hedge Fund Indices are a group of equally weighted performance indices utilized by numerous hedge fund managers as a benchmark for their own hedge funds. Unlike asset-weighting utilized by some other indices, the equal-weighting of the HCN presents a more general picture of performance of the hedge fund industry. By weighting all funds equally, this helps to reduce any bias toward the larger funds potentially created by alternative weightings, especially for strategies that encompass a small number of funds.
Funds included in the HCN Monthly Indices must:
Report monthly returns
Report Returns Net of All Fees
Report assets in USD
All HCN Indices are equally weighted (not based on AUM size).
“Bad Assets” (ie. Funds which do not report their AUM) are not included in the HCN.
The HCN Indices are made “official” on the fifteenth of the month.
Both domestic and offshore funds are included in the HCN Indices.
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