Nine of the 11 Newedge Hedge Fund Indices saw gains in October, including the Newedge CTA, Trend, and Short-Term indices.
Trend-following strategies, as represented by the Newedge Trend Index, faired particularly well, finishing the month up 2.55 per cent.
In the Newedge CTA Index, seven of the month’s top 10 performers employ trend-following strategies.
The top YTD performer of 2013 through October remains the Newedge Commodity Trading Index (Equity), which has returned 17.72 per cent over the 10-month period.
The Newedge CTA Index, which is equally weighted, calculates the daily rate of return for a pool of the largest 20 CTAs that are willing to provide daily returns and are open to new investment. Both indices are rebalanced and reconstituted annually.
The Newedge Trend Index, which is equally weighted, calculates the daily rate of return for a pool of the largest 10 trend following-based CTAs that are willing to provide daily returns and are open to new investment.
The Newedge Trend Indicator is a market based performance indicator designed to have a high correlation to the returns of trend following strategies.
The Newedge Short-Term Traders Index is designed to track the daily performance of a portfolio of the largest 10 short-term, diversified CTAs who have a holding period shorter than 10 days, are willing to provide daily returns and are open to new investment.
The Newedge Commodity Trading Index includes funds that utilise a variety of investment strategies to profit from price moves in commodity markets. Managers may typically use either a trading orientated approach, typically involving the trading of physical commodity products and/or of commodity derivative instruments in either directional or relative value strategies; or long short equity strategies focused on commodity related stocks.