Hedge Funds Performed Well In September, Says Hennessee

by Philip Morton, Investors Offshore.com

16 October 2003

The Hennessee Group has revealed that hedge funds returned 1.01% in September, noting that the firm's Hennessee Hedge Fund Index significantly outperformed indices such as the S&P 500 (which returned -1.06% for the month), the Dow Jones Industrial Average (-1.49%), and the Nasdaq Composite Index (-1.30%).

Speaking with regard to the results, managing principal of the Hennessee Group, Charles Gradante observed that the positive result in a month in which the broad markets were down shows that hedge funds "have a balanced portfolio in that they're making money on both the long and the short side".

He went on to reveal that hedge funds have maintained a cautious outlook because the market has, until recently, been liquidity-driven. Now, however, the emphasis is shifting towards an earnings-driven market.

"Hedge funds are looking at the earnings that are coming out and they find them to be of better quality than last year at this time, but not enough to justify the move in the market," Mr Gradante explained.

The best performing indices in September were the Hennessee Latin America Index, which returned 8.02%, the Hennessee Distressed Index, which returned 2.68%, and the Hennessee Macro Index, which brought in 2.07% for the month.

Worst performers were the Hennessee Technology Index, the Hennessee Europe Index, and the Hennessee Short Biased Index, which returned -0.93%, -0.43%, and -0.34% respectively.

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