The Greenwich Composite Investable Index gained 1.21 per cent in October as equity markets continued their push higher on solid corporate earnings and anticipation of quantitative easing.
All of the Greenwich investable indices moved higher on the month, with funds focusing on directional trading strategies exhibiting the best results.
The Greenwich Futures Investable Index was the best performer for the month, gaining 2.73 per cent, putting its year-to-date return at over six per cent.
The Greenwich Long-Short Investable Index advanced likewise, netting 1.22 per cent as managers increased long positions.
Laggards on the month were more market neutral strategies, such as arbitrage and equity market neutral funds, as each respective index gained 0.38 per cent and 0.42 per cent.
Year-to-date, funds specialising in long-short credit strategies still lead other investable indices, with a net return of 7.69 per cent
“The rally in equities and commodities gained steam in October as benchmarks neared their highs on the year. Hedge funds as a whole showed excellent returns with all strategy groups gaining ground,” says Clint Binkley, senior vice president. “In a one-sided market such as this, we expect directional strategies in the hedge fund space to outperform other areas, which was the end result in October. We expect to see increased volatility heading into year-end; most managers anticipate some sort of correction in the short to medium term.”