Hedge Funds Gain 2.04% In October

Nov 15 2011 | 7:22am ET

After two difficult months, hedge funds bounced back in October, with the Eurekahedge Hedge Fund Index up 2.04% (its largest monthly gain for the year) on the back of market optimism and a renewed appetite for risk.

The MSCI World Index gained 8.65% as U.S. economic data proved better than expected and Europe appeared to be coming to grips with its debt crisis. For the YTD, hedge funds are now down 2.90% (compared to a decline of 7.60% for the broader markets). The Mizuho-Eurekahedge Top 100 Index (asset weighted) is even in the black for the year, with a 2.61% return.

All regions looked good in October: Asia ex-Japan funds led the way with gains of 3.93%, European managers returned 2.37%, and North American managers returned 2.93%. Latin American funds were up 2.72% for the month, leaving them in the black YTD with returns of 2.44%.

Total assets in the industry declined by US$4.5 billion in October, driven primarily by the redemption pipeline built up since August and September. Additionally, newly available data for September shows that the sector declined by over US$60 billion during the month, with net negative asset flows accounting for US$32 billion. The industry now stands at US$1.74 trillion.

Japanese hedge funds were on the receiving end of the largest asset flows so far in 2011, gaining 7.5% through net positive asset flows.

In terms of strategies, long/short equity funds posted their largest gain since May 2009, adding 3.89% in October.

Despite some difficult months, there have been 150 new hedge funds launched to date in 2011.
 
 


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note