Speculative biotech shorts weighed on this hedge fund’s results

Sio Partners was down 4.8% net for September, compared to the S&P 500 Total Return Index's decline of 3.8%, the MSCI World Healthcare Index's 1.5% decline, and the MSCI World Index's 3.6% decline. Sio's long positions detracted 2.4% during September, while its shorts detracted 2.3%.

Q3 2020 hedge fund letters, conferences and more

A difficult September

In his September letter to investors, which was reviewed by ValueWalk, Sio Managing Member Michael Castor noted that the market was down in September, and the fund usually does well during such times. However, September did not end up being a favorable month for Sio.

The fund is typically biased toward long value stock positions, and such positions lagged during the month, just as they...