The Credit Suisse/Tremont Hedge Fund Index finished relatively flat in October, up 0.13 per cent, as a result of increased market volatility.

This brings year-to-date performance of the index to 15.11 per cent.

Dedicated short bias led the performance among sectors, returning 4.79 per cent in October, as managers took advantage of sell-offs in equity markets.

Other notable sectors included fixed income arbitrage and convertible arbitrage, which finished up 1.94 per cent and 2.16 per cent respectively for the month.

On the other hand, long/short equity was down 1.21 per cent after three months of consecutive gains, primarily as a result of increased profit taking on select long holdings as the end of the year approaches. Managed futures also suffered, returning -2.17 per cent in October.