HiQ Invest Market Neutral Fund lost 26.5% in September....

The HiQ Invest Market Neutral Fund lost 26.5% in September, after being up 19.4% ytd a month earlier.

Market turmoil, following the failure of Lehman Brothers to live up to its counter party obligations, forced the Amsterdam based quantitative hedge fund to close out some positions at significant losses. An example is German car maker Volkswagen AG, which shares surged 50% in three days dropped as traders scrambled to close short positions, while broad market indices lost 10%. According to HiQ, the short selling bans added to these unprecedented market conditions.

The HiQ Market Neutral Fund comprises of three equally weighted strategies, which were all impacted. The two algorithmic strategies, long/short and statistical arbitrage, will remain on halt until the market stabilizes. HiQ will in the mean time focus on its non-algorithmic event driven arbitrage strategy.

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HiQ Invest Market Neutral Fund lost 26.5% in September....