New York (HedgeCo.net) – Hedge funds posted a slight gain for the month as market reversals muted performance. The Credit Suisse/Tremont Hedge Fund Index (“Broad Index”) finished up 0.13% for the month, bringing year to date performance to 15.11% through October 31, 2009.
A new monthly commentary offers insight into October hedge fund performance. Some key findings from the report include:
- Dedicated Short Bias had the strongest performance, up 4.79%, the sector’s first monthly gain since February
- Relative Value strategies had a strong month, in part by implementing heavy equity hedges ( Convertible Arbitrage), or by arbitraging changes in central bank policies such as the Reserve Bank of Australia’s benchmark rate hike (Fixed Income Arbitrage and Global Macro)
- A number of hedge funds are reducing risk and winding down for the year, particularly those who were net-long the equity/global equity markets and have been able to take profits, while others, who were late to add risk, have continued to seek opportunities arising from the market volatility
- While most equity indices were down for the month, Global Macro and Event Driven managers had positive months because of these strategies’ flexibility to make gains despite market reversals