No major strategy was safe last month. October
NEW YORK: Hedge fund returns fell almost 3 percent in October as global equity markets dropped.
The decline is the worst monthly performance since September 2011, Hedge Fund Research Inc. said in a report Wednesday.
Key Insights
The largest decline was in equity strategies. Long-short funds fell about 4 percent on an asset-weighted basis. That means they’re in the red about 1.7 percent this year through October. The monthly losses were spurred in part by technology stocks, the report said.
Many tech-focused hedge funds took a beating in October along with the overall market, which saw its worst month in seven years.
No major strategy was safe last month. October’s declines were spread across equity, macro, event-driven and relative value. Macro strategies dropped 1.7 percent on an asset-weighted basis in the month.
The funds, which bet on economic trends, are down 1.5 percent for the first 10 months of the year.
It wasn’t all bad in October for macro managers.
Jeffrey Talpins’s Element Capital Management and Pharo Management’s macro fund both posted gains. - Bloomberg
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