Hedge Funds

October's equity sell-off slams hedge funds


The fourth quarter got off to a rocky start for many hedge funds, particularly those with long equity and long energy positions. In October, the Absolute Return Composite hedge fund index slipped 0.57%, putting an end to five straight months of gains and knocking the median year-to-date return to 4.05%, according to preliminary data. Losses were widespread, with only two strategies - Mortgage-Backed and Fixed-Income & High-Yield - turning in positive results.

Global equity managers seemed to bear the brunt of the slide as energy prices reversed, and the Asian and European markets gave back some of their outsized