Hedge funds declined 0.05% in October but beat indices

by Amal Robleh

The Absolute Return Composite Index fell an estimated 0.20% based on early reports to the database, now available.

October was a lackluster month for hedge funds, with the HedgeFund Intelligence Global Composite Index down 0.05%. Hedge funds did outperform equity markets, with the MSCI World Index (net) falling 0.68% for the month. On a year-to-date basis, hedge funds are still significantly trailing the double digit gains of their global equity benchmarks.

Hedge fund strategies tracked by Americas-focused Absolute Return that rose for the month included event driven, Latin American equity and multistrategy. On a global basis, the sharpest losses came for managed futures funds; the median fund employing the strategy dropped 3.21% in October. This was the worst start to a