Hedge funds outpacing large-caps this year

Nine-month return double that of the S&P 500; 'growing optimism'
OCT 26, 2010
Hedge fund performance in September was its strongest since May 2009 — but still fell short of the broad stock market indexes, according to a preliminary report by Hennessee Group LLC. The Hennessee Hedge Fund Index gained 3.5% in September for a nine-month return of 4.7%, while the S&P 500 gained 8.8% in September and was up 2.3% over the first nine months of the year. The Barclays Aggregate Bond Index gained 0.1% in September and was up 7.9% through the first nine months of the year. Hennessee is scheduled to release a full report on September hedge fund performance Oct. 11. The key to the performance data, according to Hennessee co-founder Charles Gradante, is that hedge funds continue to outperform stocks on a year-to-date basis. “While managers are concerned about elevated macroeconomic risks, we are beginning to see growing optimism about the equity markets in the short term,” he said. “The Federal Reserve is determined to create growth and inflation, benefiting equities, which look attractive relative to other asset classes.”

Latest News

IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth
IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth

IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.

Women feel confident about saving, but many still keep cash in low-yield accounts
Women feel confident about saving, but many still keep cash in low-yield accounts

A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.

SEC seeks comment on prediction-market ETFs after May pause
SEC seeks comment on prediction-market ETFs after May pause

Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.

Dump investment banks, buy alternative asset managers, says Oppenheimer
Dump investment banks, buy alternative asset managers, says Oppenheimer

"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."

TaxStatus rolls out rules-based tool to flag advice gaps
TaxStatus rolls out rules-based tool to flag advice gaps

The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.