Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index extended its positive performance into October, gaining 1.34 per cent for the month.
Many managers were able to capitalise on October’s market momentum enabling nine out of the ten sectors to post positive performance for the month.
The industry is up 7.41 per cent for the year.
Managed futures funds were among the top performers, finishing up 3.46 per cent. Performance in the space was largely led by long positions and bull spreads in corn, wheat and sugar, all of which benefited from strong rallies throughout the month.
Equity-focused managers also experienced positive performance due in part to the decrease in overall equity market correlations in October. Long/short equity managers finished up 1.75 per cent for the month, bolstered by long positions in the technology, communications, and media sectors.
On the other hand, dedicated short managers with short positions in small/mid cap stocks were negatively impacted, as several deals and rumors of takeovers caused shorted targets to rally.