News & Events

Hedge Fund Performance

Hedge funds largely repaid investors’ loyalty despite the market turmoil in October, with the Eurekahedge Hedge Fund Index up 1.3% against an encouraging market backdrop that saw the S&P 500 also up 8%. The Federal Reserve continued to signal their commitment to act aggressively to bring inflation down to the Fed’s 2% target. Meanwhile, Britain’s bond market eventually stabilized after investors rebuffed the fiscal package of former Prime Minister Liz Truss‘s government, sparking market turmoil that sent the sterling to an all-time low versus the US dollar resulting in a new government headed by former Chancellor Rishi Sunak.

September dispersion

Following the uptick in October, global hedge funds have reduced their YTD losses to 5%. By comparison, the S&P 500 has lost 17% YTD, exemplifying the relative resilience that hedge funds have displayed in navigating the market turmoil in 2022. Returns were positive across strategies in October, with event-driven (2.3%) leading the field. Long/short equity funds recorded the secondhighest return of 1.8%, bolstered by the stronger global equity market performance over the month.

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