On the heels of the worst month for hedge funds on record,
October proved to be another bloodbath as the credit crisis and
a deteriorating economy depressed global markets. The
Absolute Return Composite Index declined 2.72% in
October, the index’s second worst month ever,
preliminary data show. In September, when Lehman
Brothers’ bankruptcy pushed already edgy markets
into freefall, the Composite lost a record 4.2%.
However bad the news, hedge funds continue to outperform the
broader equity market. The S&P 500 index lost nearly 17% in
October, leaving it down 34% for the...