Hedge funds gained 1.80 per cent in October, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
The index is up 9.15 per cent year to date.
“Investors correctly anticipated that a deal would be worked out to resolve the partial US government shutdown and debt ceiling debate," says Sol Waksman, founder and president of BarclayHedge.
Fifteen of Barclay’s 18 hedge fund indices had gains in October. Equity Long Bias gained 2.58 per cent, European Equities were up 2.48 per cent, Emerging Markets gained 2.22 per cent, the Event Driven Index rose 2.11 per cent, and Distressed Securities added 1.90 per cent.
“Equity markets rallied again in October with the Euro Stoxx 50 Index gaining 6.04 percent and the S&P 500 rising 4.6 percent,” says Waksman. “Although prices trended higher, 20 percent of the S&P 500 constituents posted losses and created greater dispersion of equity price movements and better trading opportunities for long/short managers.”
On the losing side, the Equity Short Bias Index was down 3.14 per cent in October, Technology slipped 0.11 per cent, and Merger Arbitrage gave up 0.10 per cent.
Year to date, the Healthcare & Biotechnology Index has gained 22.26 per cent, Pacific Rim Equities are up 19.00 per cent, the Equity Long Bias Index has gained 17.63 per cent, Distressed Securities have returned 13.92 per cent, and Equity Long/Short is up 10.70 per cent.
The Equity Short Bias Index is down 23.78 per cent in 2013, and is close to matching the 24.12 per cent loss recorded in 2012.
The Barclay Fund of Funds Index gained 1.27 per cent in October, and is up 6.15 per cent year to date.