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Hedge Funds, Security Analysis

State of the Industry: September 2017

Matt Giordano Senior Associate, Client Analytics

In the latest version of Novus State of the Industry, we examine factor movements of September 2017, including best performing stocks & funds

For the interactive version of this report, please head to our Novus State of the Industry report.

The story of 2017 continues to be one of hedge fund resurgence. As Q3 closes, alpha continues to return to the industry in conjunction with record market highs overall. The S&P 500 set incremental but continual record highs throughout September (2.1% MTD / 14.2% YTD performance), and the Novus Hedge Fund Universe (HFU) continued in kind, rising 2.2% for the month, thereby increasing its slight alpha to the market with a 14.6% YTD performance.

The industry has seen some interesting trends lately for top performing funds, month-over-month.  As we’re now accustomed to, the top 5 MTD performers had full turnover in September, with Goldman Capital claiming the top spot with a 20.6% MTD performance. Small managers (<$1bln of LMV) still dominate the list, however; a manager over $1bln of LMV hasn’t graced the top 5 in a few months. Interestingly, Energy Opp and JVL are both energy-focused while Great Point and Acuta are healthcare-focused. Healthcare funds have shown a particularly strong presence among the top 5 each month.

Top Hedge Fund Managers September

Looking to alpha-generative names, however, healthcare companies were absent from the top 5. Three IT names and two non-healthcare focused blue-chip names generated the most alpha this month.

Top Stocks September 2017

Slicing by factor, it is the first time in a few months that the Hedge Fund industry as a whole was the best performer, and also that each factor showed positive performance for the month. This hasn’t changed the YTD picture, which continues to place Conviction (the worst performer for September) as the best performer YTD with a strong 30.5% return.

Factors September 2017

 

 

 

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