Performance challenges in the global hedge fund industry continued in October, according to the latest eVestment hedge fund performance data, with the industry’s aggregate performance of -3.10 per cent for the month dragging year-to-date (YTD) performance into the red at -2.55 per cent.
October was the second lowest month in performance since September 2011.
eVestment says: “The search for bright spots in the industry was difficult in October as almost every hedge fund primary market and primary strategy was in the red for the month, although many are still in positive territory YTD. October’s fund performance and resulting impact on YTD performance are in stark contrast to the largely positive results hedge funds saw in 2017 and 2016.
“Looking on the bright side, among primary markets, FX/Currency hedge funds returned +1.04 per cent in October, with YTD performance at +1.83 per cent. Additionally, size seemed to play a role in returns in October, with the 10 largest hedge funds seeing among the least red ink in October and showing +1.24 per cent returns YTD.”
Hedge funds focussed on Brazil delivered strong performance in October at +12.99 per cent, bringing these funds’ performance into the green for the year at +0.75 per cent. Funds focused on India, China and Russia however continued their negative trajectory in October and YTD.
Among primary strategies, Distressed and Multi-Strategy Credit hedge funds are among the strongest performers YTD, at +3.84 per cent and +2.91 per cent respectively for the year, although both saw negative performance in October.
Event Driven – Activist funds were the worst-performing primary strategy in October at -5.78 per cent and are the worst-performing primary strategy for the year at -6.86 per cent.