Hedge funds end winning streak and see red during October

Hedge funds dipped 0.51% amid dim global economic outlook

Hedge funds finished October in the red amid trend reversals, across a variety of sectors, which made for a difficult trading environment. The Eurekahedge Hedge Fund Index was down 0.51%. In contrast the MSCI World Index dropped by 0.76%¹ for the month. On the whole, however, the Eurekahedge Hedge Fund Index is in positive territory for 2012 — its return now sits at 3.81% year-to-date (YTD).

Key takeaways for the month of October 2012:

• Hedge funds saw their winning streak end with a loss in October — but they remain in the black, having gained 3.81% YTD
• Asia ex-Japan mangers continued their impressive 2012 performance by gaining 1.75% in October
• The asset weighted Mizuho-Eurekahedge Asia ex-Japan Long/Short Equity Index gained nearly 2% in October, showing that the larger funds in the region delivered the strongest gains
• Distressed debt funds were up for the 4th consecutive month in October and gained 1.87% during the month – they are now up 7.31% since end-June and 10.53% October YTD 

To read more, please see the full Eurekahedge Index Flash, also accessible on Scribd and Issuu.