Hedge funds gain ground in September

Hedge funds were on the rise September as increased market liquidity allowed most strategies to post positive returns, Hennessee Group LLC reported today. After mid-August’s lows, indexes across the board posted improvements: Nasdaq Composite Index rose 4.05%; Dow Jones Industrial Average rose 4.03%; S&P 500 rose 3.58%; Hennessee Hedge Fund Index rose 2.26%; and Lehman Aggregate Bond Index rose 0.76%. Hennessee, a New York-based investment adviser, uses performance data reported by more than 1,000 hedge funds to calculate its index. August marked the first month in 2007 in which all hedge fund subcategories ended with negative returns, a September 2007 Lipper Hedge Fund Insight Report said. August averaged a 1.53% decline in the general hedge fund index, Lipper, a New York-based fund information company, reported. While September’s returns show an improved environment for local long/short equity strategies, the dollar’s decline against most currencies and international emerging markets’ exceptional performance allowed international markets to continue to outperform the United States, Hennessee reported.