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Dow Jones Credit Suisse Hedge Fund Index posts +1.34% (est.) in October, +7.41% YTD

Monday, November 08, 2010
Opalesque Industry Update - Early estimates indicate the Dow Jones Credit Suisse Hedge Fund Index (“Broad Index”) extended its positive performance into October, gaining 1.34% for the month (based on 67.12% of assets in the index reporting).

Key highlights for the month:
- Hedge funds extended their rally into October as the Dow Jones Credit Suisse Hedge Fund Index rose an estimated 1.34%. Many managers were able to capitalize on October’s market momentum enabling nine out of the ten sectors to post positive performance for the month. The industry is up 7.41% for the year.

- Managed Futures funds were among the top performers this month finishing up 3.46%. Performance in the space was largely led by long positions and bull spreads in corn, wheat and sugar, all of which benefited from strong rallies throughout the month.

- Equity-focused managers also experienced positive performance due in part to the decrease in overall equity market correlations in October. Long/Short Equity managers finished up 1.75% for the month, bolstered by long positions in the Technology, Communications, and Media sectors. On the other hand, Dedicated Short managers with short positions in small/mid cap stocks were negatively impacted, as several deals and rumors of takeovers caused shorted targets to rally.

(press release)

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