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Hedge funds gain in October, but managed futures funds drag

Wednesday, November 13, 2019
Opalesque Industry Update - The global hedge fund industry saw an average return of +0.55% in October, bringing year to data (YTD) average industry returns to +7.09%, according to the just-released October 2019 eVestment hedge fund performance data. Managed Futures funds, which saw returns at -1.73% in October, were the primary reason aggregate returns were not more positive last month.

In addition to Managed Futures, Distressed funds (-0.54%), Macro funds (-0.25%) and Multi-Strategy funds (-0.11%) were the other strategies that produced negative results in October.

YTD 83% of funds tracked by eVestment have produced positive results, with average gains among positive performers of +11.25% for the year.

Origination & Financing funds were the big performance winners in October, producing returns of +1.75%. With YTD returns at +7.26%, Origination & Financing funds are among the top performing strategies for the year as well.

Event Driven - Activist and Long/Short Equity funds were also strong performers in October with returns of +1.43% and +1.17% respectively. With YTD performance well north of 9% for both types of funds, Event Driven - Activist and Long/Short Equity funds are the strongest performing funds among the fund strategies eVestment tracks.

China-focused hedge funds were the overall hedge fund performance winners in October, returning +3.75% for the month, which brought YTD performance to +18.26%.

India-focused funds had a strong October, returning +3.57%, but those returns weren't enough to erase the red from an overall challenging year for these funds, which stand at -1.30% performance YTD.

Russia- and Brazil-focused funds are also seeing strong returns, with October performance at +2.57% for Russia-focused funds and +1.20% for Brazil-focused funds, bringing YTD returns for these funds to +18.80% and 13.04% respectively.

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