Hedge funds cut long exposure in September: Credit Suisse

NEW YORK (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 [year-to-date] 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 <1YMc1> were up 6 points, or 0.04 percent, with 27,589 contracts changing hands.

(story corrects the category of funds that outperformed the S&P in September)

(Editing by Bernadette Baum)