Emerging Markets Top Hedge Fund Performance In ‘06

Nov 8 2006 | 12:01pm ET

October was a good month for hedge funds. Unfortunately for them, the broader markets had a better month.

A pair of indices showed hedge funds up almost 2% in October, lagging the Standard & Poor’s 500’s 3.15% return for the month. The Hedge Fund Research indices posted a 1.98% gain to hit 9.22% on the year last month—the S&P500 sits at 10.39% year-to-date—while the Barclay Group’s index rose 1.84% on the month.

All but one strategy tracked by HFR rose in October, with emerging markets continuing to lead the way. Asian-focused funds were up 3.45% on the month (16.54% YTD), while those investing in former Soviet-bloc nations rose 1.31% (23.71% YTD, the best of any strategy).

The only loser last month was the HFRI Short Selling index, which dropped 1.27% last month. It is also the only strategy in the red year-to-date, down 1.8%.

Other laggards for the first 10 months of the year include the equity hedge index, which rose 2.09% in October (8.2% YTD), equity non-hedge, with a big October at 3.2% (9.18% YTD), macro 1.35% (4.61% YTD), and relative-value arbitrage, which returned 1.35% on the month (9.12% YTD).

Funds of funds in the HFR indices are also far behind the broader markets, rising 1.56% last month to 6.4% YTD.

Winners on the year so far include convertible bond funds, up 1.34% in October (12.31% YTD), merger arbitrage, which rose 1.66% (11.76% YTD), and event-driven, up 1.73% last month (almost 11% YTD).


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note