9 Nov 2010
Hedge funds witnessed another month of strong gains in October amid a sustained rally in underlying global markets. The Eurekahedge Hedge Fund Index gained 2.26% for the month, bringing the year-to-date October returns to 7.31%. The MSCI World Index was up 3.65% in October.
Key highlights for the month:
Hedge funds in most other regions were also profitable in October as expectations of further quantitative easing and better-than-expected corporate earnings help underlying markets extend their rallies through October. The Eurekahedge North American Hedge Fund Index was up 2.42% as the S&P 500 posted a 3.69% gain, while Latin American and European hedge funds delivered returns of 1.95% and 1.31%, respectively.
In terms of strategic mandates, hedge funds across the board ended the month with healthy gains. CTA/managed futures funds stood out with the best performance in October, gaining 3.13% on average, as managers were able to capture most of the upside in rising commodity prices. A weaker US dollar, as well as supply concerns, saw most commodity contracts rise, gold hit a new record high of $1,388 during the month while soft commodities and crude oil finished the month higher. The S&P Goldman Sachs Commodity Index advanced 2.56% in the month. Managers investing in equity markets were able to deliver another month of excellent returns as the Eurekahedge Long/Short Equity Hedge Fund Index was up 2.30% in October. Distressed debt managers also continued their winning ways, gaining 1.90% and increasing their year-to-date October return to a strong 11.56%.
Key highlights for the month:
- Hedge funds were up 7.31% YTD October, ahead of global markets by 2.71%
- Greater China hedge funds rose 10.69% in the last two months
- Strong launch activity was seen in the first three quarters, with more than 600 funds launched in 2010 so far
- Global hedge fund assets crossed $1.6 trillion
Hedge funds in most other regions were also profitable in October as expectations of further quantitative easing and better-than-expected corporate earnings help underlying markets extend their rallies through October. The Eurekahedge North American Hedge Fund Index was up 2.42% as the S&P 500 posted a 3.69% gain, while Latin American and European hedge funds delivered returns of 1.95% and 1.31%, respectively.
In terms of strategic mandates, hedge funds across the board ended the month with healthy gains. CTA/managed futures funds stood out with the best performance in October, gaining 3.13% on average, as managers were able to capture most of the upside in rising commodity prices. A weaker US dollar, as well as supply concerns, saw most commodity contracts rise, gold hit a new record high of $1,388 during the month while soft commodities and crude oil finished the month higher. The S&P Goldman Sachs Commodity Index advanced 2.56% in the month. Managers investing in equity markets were able to deliver another month of excellent returns as the Eurekahedge Long/Short Equity Hedge Fund Index was up 2.30% in October. Distressed debt managers also continued their winning ways, gaining 1.90% and increasing their year-to-date October return to a strong 11.56%.
