Research

Hedge Fund Performance Commentary

Introduction

Hedge funds delivered flat to marginally negative returns during October, ending their three month winning streak. October witnessed the Eurekahedge Hedge Fund Index down by 0.19%1 with the year-to-date (YTD) return for the index standing at 4.11% and the MSCI World Index2dropping by 0.76%.

The trading environment was difficult and rather unpredictable due to sudden trend reversals across a variety of sectors. Most asset classes ended the month in negative territory while the fixed income and high yield space remained profitable. The BofA-ML High Yield Index3 was up 0.99% in October while the S&P Goldman Sachs Commodity Index4dropped by 4.07% during the month. Most currencies declined during October versus the US dollar as market sentiment turned south and investors turned risk averse.

October 2012 and September 2012 returns
 

 

All regional mandates finished the month in positive territory while the performance of the composite Eurekahedge Hedge Fund Index was dragged down ...

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Footnote

1Based on 65.59% of funds which have reported October 2012 returns as at 16 November 2012

2MSCI AC World Index All Core – USD

3Bank of America Merrill Lynch US High Yield Master II Index (Total Return Index, in Local Currency)

4S&P Goldman Sachs Commodity Index Total Return

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