News Digest: Stock rally helps global hedge funds surge in October
November 14, 2022
News Digest:
The strong recovery in the equity market caused hedge funds to advance strongly in October with the DJIA posting its largest monthly gain in over four decades. The surge came alongside inflation that touched 8.2% during the month and the US Fed prepared a further tranche of interest rate hikes for December and January.
Hedgeweek reported that the investible HFRI 500 weighted composite index by 2.1% during the month with event-based and equity hedge leading the performance. On the other hand, macro hedge funds extended strong with robust YTD gains, latest data shared by HFR says.
Takeaway:
The dispersion of hedge fund performances further narrowed in October as the top section of the HFRI constituents moved up by an average of 12.2% while the bottom decile fell by an average 6.1%, which represented a top-to-bottom dispersion of around 18.4%. This number stood at 25.1% and indicates a strong rebound.