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Hedge funds start 4th quarter on a high note with positive performance, majority of fund in the black

Thursday, November 11, 2021
Opalesque Industry Update - The global hedge fund business started the fourth quarter of 2021 on a high note, with aggregate industry performance at +1.88% in October and just over 70% of funds reporting to eVestment seeing positive results for the month, according to the just-released October 2021 eVestment hedge fund performance data.

Year to date (YTD) performance for the hedge fund industry stands at +10.86%, very close to surpassing the +11.07% aggregate return the industry posted in 2020.

Commodity-focused funds continue to be among the strongest performing segments of the hedge fund business, with October average returns at +3.10% and YTD performance at +22.63%. Commodities funds' YTD 2021 performance is much stronger than the +5.84% these funds posted for all of 2020.

Among the Equity fund subsectors eVestment tracks, Equity Energy focused funds are also among the strongest performers, at +5.19% in October and YTD average performance at +28.41%. Equity Financial focused funds are also among the business' top performers this year, posting average returns of +2.59% in October and +22.73% YTD.

India-focused funds, which have performed phenomenally this year, dipped into negative territory in October, with average performance for the month coming in at -1.79%. These funds are still leading the entire hedge fund industry YTD with average returns at +41.40%.

Among the primary strategies eVestment tracks, Event Driven - Activist funds were the top performers, with October average returns of +3.82% and YTD average returns of +24.84%.

Several other primary strategies - Origination & Financing, Long/Short Equity and Managed Futures - were strong performers in October, with average performance figures for these funds in October all above +2%, beating the industry average.

Size has not proven to be an advantage in 2021, with the 10 largest hedge funds reporting to eVestment seeing average returns of +0.99% in October and YTD average performance of +6.90%, both below the industry performance averages and performance averages for many other hedge fund types and strategies eVestment tracks.

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