Hedge fund industry down 0.11 per cent in October, says Backstop BarclayHedge

The hedge fund industry posted a second consecutive monthly loss in October, down 0.11 per cent for the month, according to the Barclay Hedge Fund Index. 

Once again, however, the hedge fund industry outperformed the S&P 500 Total Return Index, which was down nearly 2.66 per cent in October.

For the year-to-date, the hedge fund industry remained in positive territory, up 1.58 per cent through the end of October. Over the same period, the S&P 500 Total Return Index was up 2.77 per cent.

By sector, results were mixed in October, though monthly gainers outnumbered losers among the Barclay Hedge Fund Indices.

“Worrisome worldwide spikes in Covid-19 infection rates, soft shutdowns in Europe and stalled stimulus talks in the US dragged down stock markets and energy prices,” said Sol Waksman, president of BarclayHedge. “Positive economic news did manage to come out of China. The pandemic there was largely under control and economic growth surged in the third quarter.”

Setting the pace for October’s gainers was the Emerging Markets Global Equities Index, up 1.98 per cent for the month. The Technology Index gained 1.86 per cent in October, the Healthcare & Biotechnology Index returned 1.76 per cent, the Pacific Rim Equities Index advanced 1.62 per cent and the Emerging Asian Equities Index rose 1.42 per cent.

Among the sectors in the red for the month were the European Equities Index, down 3.03 per cent, the Emerging Markets Eastern Europe Index, down 2.79 per cent, the Emerging Markets Latin American Equities Index, off 2.65 per cent, the Global Macro Index, retreating 1.21 per cent, and the Equity Long Bias Index, falling 1.10 per cent.

Year-to-date gainers again remained in the majority, led by the Technology Index, up 16.99 per cent. Others in the black through October included the Volatility Trading Index, gaining 12.20 per cent, the Emerging Markets Asian Equities Index, returning 10.97 per cent, the Healthcare & Biotechnology Index, up 10.19 per cent, and the Fixed Income Arbitrage Index, rising 8.58 per cent.

Sectors falling back so far in 2020 were led by the Emerging Markets Latin American Equities Index which declined 19.28 per cent. The Emerging Markets Eastern European Equities Index dropped 9.58 per cent through October, the Emerging Markets MENA Index fell 6.75 per cent, the European Equities Index lost 3.74 per cent and the Emerging Markets Global Equities Index was off 2.85 per cent.