Hedge funds lost 2.69% on average in September, the second straight month of steep losses. Fund managers struggled to deal with increased volatility and falling prices across global markets. However, hedge outperformed the MSCI World Index, which dropped 10% for the month.
Long/short equity managers were severely impacted by negative market sentiment, losing 4.63% on average in September. Hedge funds focusing on Asia (ex-Japan) were the worst performers, dropping over 6% for the month.