FT Hedge Fund Universe Up 1.2% In November

The FTSE Hedge Global Index universe of hedge funds returned 1.2% in US$ and 1.4% in Sterling in November. This now makes for 3 months of consecutive positive returns, indicating that the period of poor performance of hedge funds over the summer may now be over. All of the styles were positive with directional and event-driven styles leading the way, returning in excess of 140 bps apiece. Of the eight strategies, only Convertible Arbitrage was down on the month (-0.2%), whereas the broad based recovery was particularly noticeable in CTA managers who delivered particularly strong returns (up over 6%); global macro managers (up 0.1%) also appear to have turned the corner as markets established a more clear direction than previously. In event-driven strategies, distressed and opportunity managers (up 2.0%) enjoyed an excellent month as sentiment improved across the board.