Fall is not the word to describe hedge fund performance in October, at least according to the Dow Jones Hedge Fund Strategy Benchmarks. In fact, the results were positively uplifting, given the blasé figures through much of year and particularly in the past couple of months. All six components of the benchmark recorded strong growth last month, with this year’s laggard, equity long/short, zooming 3.0%, followed by event driven at 2.4%. By climbing 1.2% and 1.8% in distressed securities and convertible arbitrage, respectively, those strategies have now notched year-to-date returns of 10% and 11.3%. Merger arbitrage rose 1.3% for a 7.3% YTD total. Even October’s weakest performer, equity market neutral, moved up 1.1%, making it 6.7% YTD. The rolling 12-month percentages are also looking up, with convertible arbitrage at 9.2%, merger arbitrage, 8.7%; event driven, 12.6%; equity market neutral, 13.2%; and equity long/short, 9.0%.
