Opalesque Industry Update - The Greenwich Composite
Investable Index gained 1.21% in October as equity markets continued their
push higher on solid corporate earnings and anticipation of quantitative
easing. All of the Greenwich Investable Indices moved higher on the month,
with funds focusing on directional trading strategies exhibiting the best
results. The Greenwich Futures Investable Index was the best performer
for the month, gaining 2.73%, putting its year-to-date return at over 6%.
The Greenwich Long-Short Investable Index advanced likewise, netting 1.22%
as managers increased long positions. Laggards on the month were more
market neutral strategies, such as Arbitrage and Equity Market Neutral
funds, as each respective Investable Index gained 0.38% and 0.42%.
Year-to-date, funds specializing in Long-Short Credit strategies still lead
other Investable Indices, with a net return of 7.69%|
“The rally in equities and commodities gained steam in October as benchmarks neared their highs on the year. Hedge funds as a whole showed excellent returns with all strategy groups gaining ground,” noted Clint Binkley, Senior Vice President. “In a one-sided market such as this, we expect directional strategies in the hedge fund space to outperform other areas, which was the end result in October. We expect to see increased volatility heading into year-end; most managers anticipate some sort of correction in the short to medium term. ”
The Greenwich Investable Hedge Fund Indices are specifically designed to represent the returns of the hedge fund universe. They are comprehensive in design and cover a wide spectrum of hedge fund strategies, providing investors with innovative and efficient access to hedge fund beta. Final index results for October will be available Mid-December, once all managers have submitted final returns. The indices reference actual hedge fund vehicles as opposed to separately managed accounts or other methods used in an attempt to replicate the returns of hedge fund vehicles. The Indices are reported monthly net of a 0.083% per period index calculation fee. Past performance and index construction rules for all Greenwich Hedge Fund Indices may be viewed at www.greenwichai.com.
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