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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note