Hedge funds concluded the third quarter on a strong note, up 3%, Hedge Fund Research reported Friday.
The HFRI Fund Weighted Composite Index gained 0.6% in September, posting its seventh straight positive monthly performance and bringing its year-to-date gain to 4.2%.
Equity hedge strategies led the hedge fund sector’s performance in September, as global equity markets posted mixed or flat performance. The HFRI Equity Hedge Index returned 1.1%, ending the quarter up 4.7%. Year to date, the index has gained 4.2%, recovering from declines early in the year.
Specialized technology, healthcare and energy exposures drove the gains. The technology/healthcare sub-strategy posted its strongest monthly performance in six years, up 4%, to lead all sub-strategies in Q3 with a gain of 7.6%.
The volatile energy/basic materials sub-strategy added 1.5% in September to end Q3 up 7.3%. It leads all strategies for the first nine months of the year with a 19% return.
The HFRI Event-Driven Index also advanced for September, gaining 0.7% in the month, closing Q3 up 4.4% and leading all main strategies with a year-to-date 6.7% return.