Hedge funds recovered from a disappointing August and made money again last month, but funds trading in credit continued to feel the impact of the credit squeeze, the Financial News reports.
The industry generated a positive return for investors of 0.85 percent net of fees for the month to September 26, according to the investable hedge fund index published by US data provider Hedge Fund Research.
Non-investable indices, which report after a delay, usually show returns that are higher than their investable counterparts.
The Hedge Fund Research investable index showed that, of the eight hedge fund strategies it details, six had made a profit in September. Global macro and managed futures was the best performer with a 3.24 percent return, while convertible arbitrage gained 2.34 percent.
The two losing strategies were equity market neutral funds which were down 1.48 percent in September, and distressed securities funds, which were down 0.62 percent.