Photo: BofA Merrill Lynch
Hedge funds fell 3.2% in September according to the Bloomberg aggregate hedge fund index.That’s the most since May 2010, when Bloomberg’s fell 4.3%.
“Any strategy that was exposed to the fixed-income and equity markets generated negative returns,” Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors, told Bloomberg.
“It was one of the worst months we’ve seen since 2008.”
“From a hedge-fund manager’s standpoint, there’s a lot of stress to navigate these markets.”
The latest Hedge Fund Monitor compiled by Bank of America Merrill Lynch [via Reuters] confirms that hedge funds are preparing to deliver one of the worst quarterly returns since the financial turmoil in 2008.
The report says hedge funds lost around 5.02% in the third quarter, 5.03% in the past 3 months, and -7.27% in the past 6 months. Clearly, the last two months and particularly September were significantly worse than any other month this year for hedge funds.