Hedge funds saw a net investment return of 1.78 percent in October, the best performance since January’s return of 2.29 percent, according to data from MSCI Barra. Still, its year to date return on its investable index is only 5.13 percent, which is only one percent higher than the return on cash, and it follows two months of straight losses. To reach double figures this year the index will have to beat January and October’s performance handsomely in the next two months.
Among strategies, long-biased and discretionary trading funds had a 2.32 percent return, but convertible arbitrage only made a return of 0.48 percent.