Quarterly Commentary

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Alternative Investment Commentary

Hedge funds continued to generate positive returns during the third quarter as the HFRI Fund-of-Funds Composite Index rose 0.4%. Specifically, ‘Relative Value’ and ‘Equity Hedged’ strategies were among the best performers, with the HFRI Relative Value Index and HFRI Equity Hedged Index increasing 1.5% and 0.7%, respectively, during the third quarter.  While the Alternative sector posted a net positive return for the quarter, there has been a divergence of performance among managers within similar strategies.  Many of FMC’s hedged managers have outperformed their relative HFRI benchmark for the quarter as well as for the year ending September 30th.  As for our managers that are under performing in 2018, we continue to monitor their performance, review their investment strategies and adjust allocations as needed.

*Data taken from HFRI (Hedge Fund Research Indices) as of October 8th, 2018