Wednesday, 28 September 2016
Last updated 3 hours ago
Nov 11 2013 | 10:59am ET
Hedge funds added 1.37% in October, according to the Hennessee Hedge Fund Index, trailing the S&P 500 which was up 4.46% on the month.
"Equity markets had their third best month of the year in October on the heels of the debt ceiling increase; not earnings, not the GDP nor employment,” said Hennessee co-founder Charles Gradante in a statement. "Hedge funds underperformed once again making it eight out of the last 10 months.” Gradante pointed out that the only two months hedge funds actually beat the market were down months, June and August.
Equity long/short hedge funds gained 1.29% (15.07% year to date). The best-performing sectors were telecommunication services (up 7.35%), consumer staples (up 6.13%) and industrials (up 5.05%).
In terms of sub-strategies, healthcare and biotech managers were up 26.82% YTD, followed by value managers, up 17.73% and financial equity managers, up 15.86%. The poorest-performing sub-strategies through October were short-biased, down 25.02%; macro, down 2.42% and Latin America, down 1.20%.
Arbitrage/event driven funds added 1.10% in October (8.14% YTD), distressed funds added 1.34% (12.23% YTD), merger arbitrage funds were up 0.41% (6.28% YTD) and convertible arbitrage funds rose 0.98% in October (6.95% YTD).
Global macro funds were up 1.68% in October and 4.12% YTD, emerging market funds added 2.11% on the month (5.09% YTD), and macro funds added 0.34% for the month (down 2.42% YTD). The Czech Republic, Egypt, Indonesia, India and Peru saw relative outperformance while Russia, Colombia, Mexico and Chile all slightly underperformed.
Fixed income managers gained in October while commodities posted mixed results for the month, with gold losing 0.45% while silver and platinum gained 0.99% and 3.23%, respectively.