Big October Still Has Hedge Funds In S&P’s Dust

Nov 6 2006 | 12:17pm ET

Hedge fund had their best month since the beginning of the year in October, according to the MSCI Hedge Invest Index.

The index returned 1.78% last month, the highest monthly return of 2006 save for January, when it was up 2.29%. Still, it trailed the Standard & Poor’s 500 (up 3.15%) for the month and continues to lag for the year, at 5.13% to the S&P500’s 10.13% year-to-date return.

Discretionary trading and long-bias were the top performers on the month, both returned 2.32%, but that is where the similarity ends. Long-bias is the MSCI index’s top strategy this year, with a 7.5% YTD return, while discretionary trading is its second-worst, at 3.11% YTD. Other strong strategies in October were variable bias (2.29%, 6.36% YTD) and fixed-income (2.13%, 4.19% YTD).

Other strategies were not so lucky, but the rising tide did lift all boats last month. Each of MSCI’s strategy sub-indices finished the month up, compared to September, when only three managed positive returns. The laggards were convertible arbitrage (0.48%, 7.03% YTD) and systematic trading (0.76%, 2.08% YTD).


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.