Hedge funds delivered healthy gains in October as global markets trended upwards during the month. The Eurekahedge Hedge Fund Index was up 1.41%1 during the month, while global stock indices outperformed as the MSCI World Index2gained 3.75% in October.
US related news dominated global markets for most of the month starting with the 16 day partial shutdown of the government. Political wrangling in the US Congress over the debt limit added risk to the markets, with equities declining at the start of the month. The shutdown was ended mid-month, which saw equities gain traction. Positive macroeconomic data throughout the month as well as the expectation that the US Federal Reserve will postpone tapering added further impetus to global markets.
September and October 2013 returns across regions
All regions posted positive returns for the month with Asia ex-Japan focused funds delivering the strongest gains for a second consecutive month. The Eurekahedge Asia ex-Japan Hedge Fund Index was up 2.19% in October. Hedge funds focused on India and Australia/New Zealand delivered the strongest gains amid strongly rallying markets – the BSE Sensex was up 9.21% while the ASX All Ordinaries Index gained 3.88%.
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1 Based on 44.58% of funds which have reported October 2013 returns as at 13 November 2013
2 MSCI AC World Index All Core (Local)