Over two-thirds (67%) of hedge funds recorded positive returns in October, marking a significant turnaround from the 31% that managed to end the previous month in positive territory, according to a report by Forbes.
Over two-thirds (67%) of hedge funds recorded positive returns in October, marking a significant turnaround from the 31% that managed to end the previous month in positive territory, according to a report by Forbes.
Despite the profitable start to the final quarter of the year though, most still have a long way to go if they are to a cancel out losses recorded so far win 2022.
The report cites the latest Citco Monthly Hedge Fund Update as revealing that the overall weighted average return for hedge funds administered by the company was 1.6%, as all strategies generated positive weighted average returns. The overall median return was 0.8%, demonstrating that the largest funds were the best performers last month.
Citco’s data reveals that, in terms of returns, multi-strategy hedge funds led the hedge fund pack in October with a weighted average return of 2.3%. Event-driven and fixed-income arbitrage funds also performed strongly with weighted average returns of 1.6% and 1.5%, respectively.
The data also reveals significant dispersion among multi-strategy and event-driven funds, which recorded median returns of only 0.2% and 0%, respectively, for October. Fixed-income arbitrage funds saw a median return of 1.3% last month.
Equities funds, which have been hit hard by this year’s bear market, recovered some ground in October with a weighted average return of 1.4%, in line with their 1.3% median return.
Global macro at 0.8%, was the worst-performing strategy on a weighted-average basis followed by commodities at 1%. On a median basis, the worst-performing strategy was event-driven, which was flat, followed by multi-strategy at 0.2%, global macro at 0.4%, and commodities at 0.6%.
The largest hedge funds were the best performers, as those with more than $3 billion in assets under administration recorded a weighted average return of 2.1%.
