(Corrects the category of funds that outperformed the S&P in September)
By Ryan Vlastelica
NEW YORK, Oct 2 (Reuters) - Managers of equity long/short funds cut their net exposure in September, a month during which markets pulled back on a rising dollar and questions over the timing of the Federal Reserve’s next rate hike, Credit Suisse wrote in a note.
The declines came across regions and sectors, though there was an emphasis in cyclical sectors.
“These reductions in longs and adds to shorts brought the long-short ratio to a low of 43 percent as returns and the European growth outlook both wane,” the firm said in the note published late Wednesday.
The top 50 short positions within equity long-short funds returned an average of 5.9 percent through September, Credit Suisse wrote, on pace for 490 basis points of outperformance compared to the S&P 500, “the highest since at least January 2013.”
Futures snapshot at 0825 EDT:
* S&P 500 e-minis were up 2.5 points, or 0.13 percent, with 207,837 contracts changing hands.
* Nasdaq 100 e-minis were gaining 5.5 points, or 0.14 percent, in volume of 34,374 contracts.
* Dow e-minis were up 6 points, or 0.04 percent, with 27,589 contracts changing hands. (Editing by Bernadette Baum)