Short-selling activity picks up in September while systematics post best month since August 2022. A strong performance on short positions helped low-net and market-neutral equity strategies post modest gains. Indeed, short activity increased throughout the month, predominantly in the US but extending into other regions. Systematic trend followers reversed last month's slide, up between 2% and 4% in September; marking their best month since August 2022. Managers benefited from short bond positioning as well as long positions in oil and precious metals. Directional strategies were down 1.5% in aggregate in September, with losses predominantly beta-driven. TMT and growth-oriented funds were down between 1% and 2% on the month, while value performance was mixed with monthly returns largely ranging from 3% declines to 3% gains. EMEA equity strategies outperformed US and APAC. Despite a modest rally in Chinese equities, China focused equity strategies lost about 5% for the month. FX trades were generally profitable. Event driven strategies had another positive month, up 0.5-2%.
- UBS Strategy
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