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.
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.
The full article is available here accessible to paying subscribers only.
Subscribers may continue to login as usual to download the full report and non-subscribers may sign up hereto enquire on how to obtain the full research report.