Long/short equity funds in Europe produced some badly-needed
better numbers in October on the back of the sudden and
powerful rally in world equity markets last month, with the
EuroHedge Composite index showing a positive return for the
first time since April.
But most managed futures funds and several macro managers
were hurt by the sharp change in sentiment, while many players
in long/short equity and other strategies missed out on the
market rebound as a result of their cautious and risk-averse
positioning following the extremely tough conditions in
With markets turning very bearish and volatile again in the
first two weeks of November on account of acute alarm over
Italy and the ever-escalating Eurozone economic and political
crisis, the strong equity market rally in October - when the
S&P had its best month since 1974 and the MSCI Europe index
was up by almost 8%...