BOSTON Oct 7 Hedge fund returns inched ahead in
September to finish their strongest quarter of the year, new
data released on Friday showed, but they are still lagging the
broader stock market's gains.
The average hedge fund gained 0.62 percent in September,
leaving it up 4.2 percent for the first nine months of 2016,
research firm Hedge Fund Research said. The Standard & Poor's
500 stock index has climbed 7.8 percent this year.
With stock markets rebounding in the last weeks, many hedge
funds boasted relatively strong returns in September. Daniel
Loeb's Third Point climbed 1.1 percent, while Citadel's
Wellington fund gained 2 percent, and Barry Rosenstein's Jana
Partners returned 2 percent, the funds told investors. That
leaves Third Point up 7.2 percent for the year, while Citadel is
up 2.6 percent and Jana Partners trimmed its losses to 1.1
Hedge fund returns have drawn particular scrutiny in recent
months as some large investors, including pension funds in Rhode
Island and New Jersey, are pulling money out, complaining about
lackluster returns and high fees. Poor performance has also
forced some firms, including most recently Richard Perry's Perry
Capital, out of business.
As a group, hedge funds gained 3 percent during the third
quarter with some, like Citadel which surged 7.3 percent,
scoring even bigger gains. They gained 1.8 percent during the
second quarter after a 0.60 percent loss for the first three
months of the year.
Funds concentrating on technology and healthcare performed
the best last month, notching 4 percent gains, HFR said. But as
a group they suffered heavy losses at the start of the year and
are up just 3.22 percent for the first nine months of 2016.
But for some funds, September was a tough month. David
Einhorn's Greenlight Capital saw its gains for the year shrink
to 4.5 percent after losing nearly 1 percent in September and
Bill Ackman's Pershing Square Holdings fell 5.3 percent last
month leaving the fund down 18.8 percent for the year, investor
documents seen by Reuters show.
(Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)