Hedge funds followed by Hennessee produced a positive return of +1.47% in September, bringing the 2004 year to date return to +2.57% for the Hennessee Hedge Fund Index.
The broad market indices were mixed for the month, as the S&P 500 DRI Index climbed +1.08% (+1.52% YTD), the Dow Jones Industrial Average fell -0.92% (-3.58% YTD), and the NASDAQ Composite Index gained +3.20% (-5.28% YTD).
“The notion that our next major battle will be stagflation has crept into the dialogue we are having with many hedge fund managers,” says Charles Gradante, Managing Principal of Hennessee Group LLC. “Managers point to rising commodity prices, coupled with large global budget deficits, as conditions potentially leading to stagnant GDP growth with commodity inflation, lower disposable income, and no pricing power.”