Hedge funds stumbled into the red during the third quarter, posting a loss of 0.4%, according to alternatives data provider Preqin.
It was the sector’s first negative quarter since Q2 2012.
Year-to-date returns were down 3.3%, compared with a 7.8% positive return for the same period last year.
Long/short funds lost 0.9% for the quarter and event-driven funds 2.3%.
In contrast, macro strategy funds picked up 0.5% in Q3, taking their year-to-date return to 2.5%, compared with 1.5% over the same 2013 period.
CTAs, climbing back from a dreary losing stretch, were Q3’s star performers, up 5.5%. This was their best quarterly performance since Q4 2010, and brought their year-to-date return to 7.1%.
Preqin noted that North America- and emerging-markets-focused funds were hit hardest by the turbulent Q3, which affected all regions globally. North America-focused funds lost 1.4%, though the region remained the best performer over 12 months, up 9.1%.
Q3 Hedge Fund Rollouts