Equity funds fly, CTAs dive in October market rally

Fri Nov 11, 2011

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 previous months.

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%...

ISSN: 2151-1845 / CDC10004H

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