Alternative Investment Commentary

Hedge Funds declined during the third quarter as the HFRI Fund-of-Funds Composite Index decreased by 1.1%. The sector underperformed during the quarter as global stocks experienced an uptick in volatility amid negative headlines in August regarding the U.S.-China trade war and investor’s concern over the risk of an economic downturn. Specifically, ‘Equity Hedged’ and ‘Event Driven’ strategies were the worst performing strategies during the third quarter as the HFRI Equity Hedged (Total) Index and HFRI Event Driven (Total) Index decreased by 1.1% and 0.7%, respectively. We were pleased with our core managers’ performance during the quarter as the average return across our Alternatives platform outperformed the HFRI Fund-of-Funds Composite Index by 140 basis points. As we have added new managers to the platform in 2019, we believe our platform of managers are well positioned to close the year on a positive note.  

*Data taken from HFRI (Hedge Fund Research Indices) as of October 10th, 2019