Hedge funds, as measured by the RBC Hedge 250 Index, declined 1.81 per cent last month, taking the year-to-date return of the index to down 3.23 per cent.

September’s slump was not as sharp as in August, when the index recorded a 2.41 per cent drop.

The RBC Hedge 250 Index is a non-investable benchmark of the performance of the hedge fund industry. The index is based on 4,190 hedge funds, excluding funds of hedge funds, with aggregate assets under management of $1.054 trillion.

The sharpest decline was recorded by Mergers & Special Situations (minus 5.06 per cent) and the most positive result by the Macro strategy (1.98 per cent).

Earlier this month, the Dow Jones Credit Suisse Core Hedge Fund Index reported a drop of 4.23 per cent in September, while the Credit Suisse Liquid Alternative Beta Index fell by 3.41 per cent.