Hedge funds helped investors benefit from the global equity markets uptick in October gaining 1.3% during an encouraging month that also saw the S&P 500 up 8%. Despite this, hedge fund industry AuM declined for the seventh consecutive month, falling $3.8bn, which extended the YTD decline to $207bn.
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.