Hedge funds posted broad-based if somewhat underwhelming gains in October, according to a major industry benchmark.
The Credit Suisse Hedge Fund Index returned 1.59% last month, as the Standard & Poor's 500 Index rose more than 4.5%. The Broad Index is up just 7.03% on the year, against well over 20% for the S&P500.
Each strategy tracked by Credit Suisse posted gains in October save one, dedicated short-bias, which continues to be mauled by the ongoing stock market rally. Short funds fell an average of 1.65% last month and are down 23.21% on the year.
Managed futures funds, on the other hand, surged 2.96% last month as they seek to at least break even for the year. Through 10 months, the strategy remains down 4.66%, and is the only strategy other than short-bias in the red for the year.
Long/short equity funds added 2.54% (13.55% year-to-date), emerging markets funds 2.01% (6.28% YTD), multi-strategy funds 1.77% (8.51% YTD), distressed funds 1.53% (12.05% YTD), event-driven funds 1.45% (11.76% YTD), event-driven multi-strategy funds 1.41% (11.67% YTD), equity-market neutral funds1.17% (5.15% YTD), global macro funds 1.01% (2.53% YTD), convertible arbitrage funds 0.92% (5.68% YTD), fixed-income arbitrage funds 0.61% (3.1% YTD) and risk arbitrage funds 0.57% (4.38% YTD).