September proves worst month for hedge funds in decade


Hedge funds in the United States lost more in September than they have in any other monthly period for the past decade. According to preliminary data, the Absolute Return Composite Index lost 2.5%, nearly touching the worst month on record: the 2.56% loss posted by hedge funds in August 1998, during the Russian debt default and ensuing global crisis.

European and Asian funds fared even worse. According to early results, the EuroHedge Composite Index had its worst month since 1998, when HedgeFund Intelligence began tracking performance. The median gave up an estimated 3.33% for September, for a year-to-date loss