Equities: Limping along to victory


Long/short equity funds, both domestic and global, turned in another lackluster month in September as they continue to lag the broader markets.

Historically low volatility continued from August into September and may have aided in the stagnation, but more clearly at fault was the retreat from risk that a number of managers have maintained following their early summer losses. Net long exposure to the markets may pay off in the long run, but long/short funds are missing the ride at present.

The Absolute Return U.S. Equity Index gained a median 0.20% in September to total 6.73% YTD. That's far