News Digest:

Widespread redemptions covering almost all strategies and size categories of hedge funds were witnessed over the past few weeks. As stock and bond markets continued to plumb new depths, several hedge funds widened their losses. For e.g., those administered by Citco widened its losses to -3.1% in September, compared to 0.6% in August.

Multi-strategy funds were among the worst performers in September as their weighted average returns plunged to -5.6%. Even equity funds performed poorly losing 2.8% during the month. On the other hand, commodities remained the best-performing strategy that posted a weighted return of 1.9%, says a report.

Takeaway:

There were some sizeable dispersions among the multi-strategy and commodity funds where median returns ranged between -0.2% and -0.1% respectively. Global macro funds too had a similar dispersion as their median returns stood at zero.

End Notes

Source: https://www.forbes.com/sites/jacobwolinsky/2022/10/19/widespread-redemptions-shake-hedge-funds-as-losses-mount/?sh=b395c1c65ff4