Index Has Hedge Funds Up 1.85% In Oct.

Nov 4 2011 | 11:37am ET

Hedge funds bounced back last month with most posting positive returns. But they still have a ways to go if they're to end 2011 in anything but the red.

The average fund rose 1.85% in October, the Dow Jones Credit Suisse Core Hedge Fund Index shows. But after a rough August and September—the benchmark fell more than 4% in the latter month—the index remains down 6.13% on the year, with just two months to go.

Long/short equity hedge funds had the best month, rising 5.27% to cut their average year-to-date loss to 4.37%. Event-driven funds also did well, adding 2.66%, but they remain down an average of 11.01%. By contrast, managed futures funds had the worst October, dropping 5.07%, leaving the strategy down 5.18% on the year.

"Event-driven was the highest performing sector last month as many managers restructured their portfolios to reduce exposure to softer 'catalyst' situations, such as management changes and litigations. These situations were drivers of underperformance in September," Oliver Schupp, president of the Credit Suisse Index Co., said. "Meanwhile, managed futures, the best performing strategy in September, was the worst performer in October as trends reversed against many short equities, short commodities and long fixed-income positions."

Only one other strategy suffered a loss in October: convertible arbitrage, which lost 0.52% (down 6.63% YTD). And only one is in the black for the year—and just barely: fixed-income arbitrage, which rose 0.18% last month and is up a microscopic 0.01% on the year.

Global macro funds added 1.84% in October (down 9.14% YTD) and emerging markets funds 1.73% (down 1.15% YTD).


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.