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Back You are here: Home Funds Funds Update Alternative Hedge Funds Trail Stock Rally 3Q 2012

Hedge Funds Trail Stock Rally 3Q 2012

The September increase brought hedge funds’ gains this year to 3.6%, compared with an advance of 13% for equities worldwide, including dividends.  The main Bloomberg hedge fund index is weighted by market capitalization and tracks 2,698 funds, 1,182 of which have reported returns for September. The index is down 9 percent from its July 2007 peak.

Macro funds, which bet on economic trends, rose 0.3 percent in September and fell 0.5 percent in this year’s first nine months.

Multistrategy funds returned 0.3 percent last month and dropped 2.9 percent in 2012.

Long-short equity funds, whose managers can bet on rising and falling stocks, climbed 0.3 percent last month and 1.9 percent in 2012, according to data compiled by Bloomberg.

Hedge funds trailed the major indices because the central banks are all intervening and forcing liquidity into the markets, and causing the general stock market to rally,” said Jay Rogers, president of Irvine, California-based Alpha Strategies Investment Consulting Inc., which advises family offices as well as hedge funds seeking to raise money.