Hedge funds were generally down in the third quarter and continue to face challenging market conditions, according to the latest weekly briefing from Lyxor Asset Management.  The Lyxor Hedge Fund Index (HFI) was down -1.5% for the week to September 29, compared to a 3% nosedive in the S&P 50 driven partly by adverse developments in the health care sector. In this environment, hedge fund performance was broadly negative, with only CTAs posting positive returns, up 0.5%. Macro managers also continued to outperform as a result of their long positions on Fixed Income, booking an essentially flat -0.3% loss. L/S...