Hedge Funds Power Back In October

Nov 12 2007 | 7:35am ET

The Greenwich Global Hedge Fund Index returned 3.01% in October, representing its strongest month since January 2006 and the best performance for the first 10 months of the year since 2003. 

The GGHFI’s year to date of 12.39% is on par with the MSCI World Equity Index (YTD 12.75%), and ahead of the S&P 500 (YTD 10.86%) and FTSE 100 (YTD 8.06%).

“October’s consistency of performance across strategies has hit its strongest level since 2003, with all four strategy groups’ returns at their highest since January 2003 or before,” notes Ben Rossman, senior vice president. “The directional trading group surged 4.48% in October, up 10.76% YTD. Following the Group’s 3.90% September rally, October’s surge marks what may be one of the larger two-month recoveries.”

The specialty strategies group returned 3.63%, up 18.36% YTD. The long/short equity group followed, up 2.92% and 13.24% for the year. The market neutral group had its strongest month since January 2006, yielding 2%, up 9.06% YTD.

All 18 individual strategies tracked by the GGHFI ended in positive territory and are positive for the year. The October Index currently includes 988 funds.
Meanwhile, the Greenwich Composite Investable Index returned 1.53% in October (5.80% YTD). It references 49 actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate hedge fund returns. The Investable Index has a correlation of 0.93 to the GGHFI and is reported monthly net of a 0.04% Index calculation fee.

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