Hedge funds outperformed global equity markets yet again in September (-2.69%1 vs. -9.98% for the MSCI AC World Index) as managers focused on hedging strategies and short-term directional trades. All regional mandates finished the month with losses but fixed income and Latin American hedge funds are still in positive territory YTD. Managers lost more than US$37 billion in total assets through the month as investors accounted for US$20.98 billion of net outflows. Hedge funds now oversee US$1.76 trillion of capital - the lowest figure since March 2011.
Highlights of hedge fund performance and asset flows for the month are as follows: