Opalesque Industry Update - In a month which historically has produced negative results, hedge funds returned an average of +1.7% in October 2013 as indicated by the Greenwich Global Hedge Fund Index. 81% of the Global Index's constituents reported positive returns for the month. Equity markets, as measured by the S&P500, up +4.6%, MSCI World, up +3.8% and FTSE 100, up +4.2%, continue to be strong going in to the last quarter of 2013.|
Global Index Strategy Highlights
The Long-Short Equity group outperforms all major strategies again gaining +3.0% in October. The group was led by Long/Short Growth funds which were up +3.9% for the month. Short-Biased funds, along with Futures funds and the Directional Trading Group, were the only strategies to post losses of -5.1%, -0.7% and -0.2% receptively for October.
Distressed Securities continued to dominate on a year-to-date bases. Up an average +15.2% in 2013, Distressed Securities funds gained +1.8% in October.
The Event-Driven funds category also reported strong gains in October. The main category, Event Driven, reported a gain of +1.9%, with the Diversified Event-Driven sub-category adding +2.2%, Distressed Securities up + 1.8%, and Merger Arbitrage funds increasing +1.0%.
Emerging Markets outperformed developed markets by more than double, adding +3.5% over the month of October. Despite a rocky start to the US markets in October due to the US Government shutdown and lingering uncertainty as to whether the Federal Reserve would not begin tapering, the Americas Regional Index improved +2.0% this month.