According to the HFN Hedge Fund Aggregate Average, the second round of U.S. Federal Reserve interest rate reductions pushed hedge fund returns up +3.32% in October 2007.
Strategies which rebounded sharply following the U.S. Fed's actions in September were again beneficiaries in October. The HFN Emerging Markets Average was +5.01% in October and +22.22% YTD. Energy sector funds took advantage of oil prices closing in on $100/barrel.
The hedge fund’s excellent performance wasn't limited to commodity related strategies, several equity related strategies outperformed broad equity benchmarks. Long only strategies outperformed the S&P 500 by the largest margin in the last twenty months. Additionally, technology sector funds returned +5.07% in October while the healthcare sector and small/micro cap funds returned +5.07% and 3.43%, respectively.
Hedge funds influenced by market volatility through options strategies produced their best average performance in five years, and macro funds continue to benefit from strong trends in currency and commodity markets.
HedgeFund.net (HFN), a division of Channel Capital Group Inc, is a source for hedge fund news and information. Registered users include a wide range of institutional investors and high net worth individuals.
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