Eurekahedge: Hedge Funds Gain 1.33% in October, Up 1.77% YTD

Nov 11 2015 | 2:43pm ET

Hedge funds ended their four-month losing streak in October as Eurekahedge’s Hedge Fund Index gained 1.33% in October, according to a flash update from the company. 

On a year-to-date basis, the index is up 1.77% while underlying markets as represented by the MSCI World have gained 1.40%.

The Eurekahedge measure is the latest hedge fund industry metric to show a sharp performance rebound during October on the strength of rebounding equity markets across the board. 

In the update, Eurekahedge also cited the assistance provided to markets by key central banks, as the ECB and BOJ policy remains particularly dovish while the U.S. Federal Reserve has taken pains to reassure markets that even if they hike in December, the pace of monetary policy normalization in the United States will be gradual. 

Eurekahedge also noted a number key takeaways from October’s results:

  • On a year-to-date basis, hedge funds are up 1.77%, which compares with a gain of 3.52% seen over the same period last year. 
  • Total industry AUM has increased by $95 billion as of October 2015 YTD, almost $10 billion lower compared to the same period last year. However, capital inflows have accounted for almost 73% of this growth as net investor flows for the year stand at $70 billion in comparison to $50 billion over the same period last year
  • Among developed market investment mandates, Japanese and European managers lead with year-to-date gains of 4.93% and 4.19% respectively, while North American hedge funds trail behind with gains of 0.52%.
  • Greater China investing hedge funds were up 4.84% in October and 8.86% year-to-date, outperforming the CSI 300 Index by almost 9%. CTA/Managed Futures funds, meanwhile, were the only strategic mandate in the red, dipping 0.99% for the month.
  • On a year-to-date basis, distressed debt funds have posted the worst return among all hedge fund strategic mandates, down 3.13% and are on track to post their worst performance since 2008. Arbitrage funds, on the other hand, gained 1.83% in October and are up 5.52% YTD – the best among Eurekahedge’s 13 strategy indices.
  • Asia ex-Japan hedge funds were up 3.13% in October and 6.94% year-to-date - the best return among all hedge fund regional investment mandates. In comparison, the MSCI AC Asia ex-Japan is down 3.84% year-to-date.

Eurkahedge’s flash update data is based on 40.98% of funds which have reported October 2015 returns as at 11 November 2015.

Eurekahedge tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe. The firm's database tracks more than 130 data points on more than 24,000 alternative funds

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