Equity funds fly, CTAs dive in October market rally


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