The six strategies covered by Dow Jones Hedge Fund Indexes all posted gains in October, giving the industry a good start to the fourth quarter of the year.
The six strategies covered by Dow Jones Hedge Fund Indexes all posted gains in October, giving the industry a good start to the fourth quarter of the year.
Equity long-short was again the best performer in October, gaining 3.77 per cent for the month after returning 4.82 per cent in September. With a year-to-date return of 20.48 per cent, it is the top performer so far in 2007. Merger arbitrage was the other strong performer, posting a return of 2.72 per cent for the month and taking its return over the first 10 months of the year to 18.19 per cent.
Convertible arbitrage and event driven notched up gains for the month of 1.06 per cent and 0.99 per cent respectively, while equity market neutral and distressed securities – the two strategies that declined in September, enjoyed growth of 0.59 per cent and 0.49 per cent respectively.
These compare with October gains of 1.19 per cent (2.13 per cent on a full-cap basis) for the Dow Jones Wilshire 5000, which is up 11.22 per cent in 2007 (11.42 per cent on a full-cap basis); a monthly gain of 1.17 per cent for the Dow Jones Corporate Bond Index, whose cumulative return is up 4.07 per cent for the year; and a 4.11 per cent increase for the month and 18.55 per cent for the year to date for the Dow Jones Wilshire Global Index.
October figures for the Dow Jones Hedge Fund Strategy Benchmarks are based on daily estimates net of fees. Final performance figures for October will be available towards the end of this month.
