NEW YORK (HedgeWorld.com)–The CSFB/Tremont Hedge Fund Index rose 1.38% in October and returned 12.02% in the year-to-date period through October.
As an asset-weighted index, the broader CSFB/Tremont index got a big boost from the popular style long/short equity. Long/short equity funds in the index returned 2.46% in the month and are up 12.62% year-to-date through October.
Also performing well in October were emerging markets hedge funds, which returned 2.25% in the monthly period and 22.89% in the first 10 months of the year.
The CSFB/Tremont convertible arbitrage category returned 1.67% in October and rose 10.72% year-to-date.
Multi-strategy hedge funds tracked by CSFB/Tremont returned 1.21% in October and were up a strong 11.45% in 2003.
The event-driven hedge fund category was up 1.53% in October and 16.85% year-to-date. The strong returns came in part from distressed funds, which returned 1.98% in October and 21.52% in the first 10 months of 2003. Multi-strategy event-driven funds returned 1.1% and 14.16% in the same respective periods. But the risk arbitrage category, also known as merger arbitrage, did well in October following mediocre performance the rest of the year. In October, risk arbitrage returned 1.21% and is up 7.44% during the year through October.
Managed futures hedge funds returned 0.78% in October and were up 7.69% year-to-date through October.
Equity market neutral funds returned 0.67% and 5.73% in the same respective periods.
Fixed-income arbitrage funds aren’t having a great year, with October’s performance clocking in at 0.46%, while year-to-date performance is 6.55%.
Despite tepid returns in October of 0.09%, global macro hedge funds maintained healthy performance for the year, with a year-to-date return of 15.21%.
And amid the continuing bull market in U.S. equities, dedicated short-bias funds returned negative 7.56% in October and were down 28.45% in the first 10 months of the year.