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: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.