Global hedge funds experienced sharp performance dispersion in September, navigating a turbulent backdrop driven by Fed rate hikes, multi-decade high Treasury yields, elevated oil prices, and technology sector rebalancing.
📌 Key Performance Breakdown & Figures:
- Systematic vs. Fundamental: Computer-driven systematic equity long-short funds surged 3.46% (their best month this year), while fundamental equity long-short funds fell 0.55%—still outperforming the MSCI World Index (-1.3%).
- Macro Winners: Trend-following strategies excelled, with the SG Trend Index rising >4% via short bond and long energy positions. Bridgewater’s Pure Alpha fund reached an 18.4% YTD return through Q3.
- Regional & Tech Trends: Asian hedge funds slipped 0.6% in September. In the US, funds rotated away from hardware and electronic equipment while deploying fresh capital into semiconductor equipment and software.
🌐 Macro & Market Drivers: A Fed rate hike, rising Middle East geopolitical tensions driving oil prices, and fears of an AI spending slowdown triggered rotation across crowded tech positions, reinforcing performance divergence across systematic and discretionary managers.