Hedge Funds Add 0.81% In Oct.

Nov 3 2011 | 10:08am ET

Hedge funds ended a brutal two-month losing streak in October, but missed out on the spectacular stock market rally.

The average hedge fund added 0.81%, Hedge Fund Research's HFRX Global Hedge Fund Index shows. That's a welcome respite from August and September, when the index fell 3.47% and 2.99%, respectively. But it came amidst an impressive turnaround for the Standard & Poor's 500 Index, which soared 11% in October, erasing its year-to-date losses.

Hedge funds have a long way to go over the next two months before they can say that. The HFRX index remains down 7.68% on the year.

Equity hedge funds, in particular, must be kicking themselves over the lost opportunity. The HFRX Equity Hedge Index rose 1.36% in October—but remains down 17.27% on the year. Fundamental value funds managed a 1.23% return, but are still off 22.84% year-to-date.

Distressed restructuring funds have the best month, adding 3.06% (down 4.98% YTD). Event-driven and special situations funds also did relatively well, rising 2.11% (down 3.43% YTD) and 2.03% (down 2.29% YTD), respectively.

Multi-strategy relative value funds rose 1.4% to become the only strategy tracked by the HFRX suite in the black year-to-date at 1.29%. Merger arbitrage funds rose 1.28% (down 1.89% YTD) and relative value arbitrage funds 1.16% (down 2.99% YTD).

Other strategies extended their losses for the year in October. Systematic diversified commodity trading advisors fell into the red with a 4.84% loss (down 3.95% YTD), while macro funds and other CTAs merely extended them, dropping 1.99% (down 4.9% YTD). Convertible arbitrage funds also lost ground, shedding 0.55% (down 2.31% YTD).


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.