Hedge fund returns surged in August as global stock markets hit record highs, with health care and tech sectors leading the rally. Goldman Sachs reported stock pickers returned 2.2% in August and systematic funds gained 2.4%, up 12.3% for the year. Hedge funds turned cautious in September despite expected U.S. rate cuts. Trading flows declined, with hedge funds selling stocks in most regions except China. Marshall Wace and U.S. multi-strats like Citadel and Millennium Management reported positive results for August.

Read more at Yahoo Finance: Hedge funds ride August highs to keep returns positive