Hedge funds, as measured by the HFN Hedge Fund Aggregate Average, posted their best one-month return in four years last month, rising 3.27%. It was also their second-best one-month return in eight years. Year to date through the first nine months, they are up 9.4%.
The Federal Reserve’s interest rate cuts have helped hedge funds, boosting hedge fund strategies that had faltered in August. Commodity funds, for instance, did well; the HFN CTA/Managed Futures Average rose 6.15% in the month.
Also, with oil rising above $80 a barrel, energy sector hedge funds also fared well; the HFN Energy Sector Average rose 4.99%.
Others that did well were technology funds (up 8.33%), small/micro cap funds (up 4.32%) and healthcare funds (up 3.5%).