For the first time since February, hedge funds had a losing month, according to BarclayHedge.
The Barclay Hedge Fund Index shed 0.2% in October. But hedge funds are still on pace for a huge bounce-back year after last year’s nightmare.
“Prior to October’s loss, the Barclay Hedge Fund Index gained 21.96% during seven consecutive months of positive performance,” Sol Waksman, founder of BarclayHedge, said. “It was the best return for a string of winning months since the 18-month period from October 2002 through March 2004, when the index gained 25.8%.”
Still, October saw 11 of BarclayHedge’s 18 strategy indices fall. Equity long-bias funds lost 1.79%, European equities 1.69%, healthcare and biotechnology 1.35%, equity long/short 1.21% and technology 1.17%.
Short-bias funds benefitted from the same market volatility that burned long-bias and long/short funds, rising 4.34% on the month. Fixed-income arbitrage added 2.2%, distressed securities 1.53%, convertible arbitrage 1.27% and emerging markets 1.05%.
The Barclay Fund of Funds Index dropped 0.09% in October and is up 8.66% on the year.
