West Palm Beach (HedgeCo.Net)- According to the HFN Hedge Fund Aggregate Average, the second round of U.S. Federal Reserve interest rate reductions pushed hedge fund returns up +3.32% in October 2007.
Strategies which rebounded sharply following the U.S. Fed’s actions in September were again beneficiaries in October. The HFN Emerging Markets Average was +5.01% in October and +22.22% YTD. Energy sector funds took advantage of oil prices closing in on $100/barrel.
The hedge funds excellent performance wasn’t limited to commodity related strategies, several equity related strategies outperformed broad equity benchmarks. Long only strategies outperformed the S&P 500 by the largest margin in the last twenty months. Additionally, technology sector funds returned +5.07% in October while the healthcare sector and small/micro cap funds returned +5.07% and 3.43%, respectively.
Funds influenced by market volatility through options strategies produced their best average performance in five years, and macro funds continue to benefit from strong trends in currency and commodity markets.
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