WEST PALM BEACH, FL (HEDGECO.NET) – The recovery of hedge funds from negative performance that began in September, continued into October according to a new study conducted by the French BusinessSchool, Edhec. Edhec reported only three out of thirteen hedge funds surveyed lost ground in October. The research attributed such improvements to a better stock market environment, as well ashealthy bond market returns during that period.
2004 has been a difficult year for hedge funds. Many hedge funds realized weaker than expected results year-to-date to August, but September through October have seen improving returns according to Edhec.
Other hedge fund indexes reported positive data for October as well; the Van Global Hedge Fund Index posted an October gain of 0.6% net, according to Van Hedge Fund Advisors International, LLC (VAN). For the year to date, the Index has earned 3.3% net. Standard & Poor’s reported that its October hedge fund performance as measured by the S&P Hedge Fund Index(S&P HFI), was up 0.72% for the month, led by strong performance from both directional and event-driven managers.
According to Edhec, CTA Global, funds trading commodity futures, options and foreign exchange products, was the best performing strategy in October with a 3.81 percent return following increases in commodity prices. The study also said emerging market funds, which have returned 8.36 percent in the year to date, yielded 1.73 percent on average in October. According to Edhec, the worst performing strategies were convertible arbitrage, down 0.45 percent, and short sellers which were down 0.89 percent on October.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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