GLOBAL - The CSFB/Tremont Hedge fund index posted a 0.4% rise for October, with managed futures the top performer for the second successive month.
Despite the index being up 12% on September, the most dramatic increase for October was from the tech-laden NASDAQ, which showed a near 30% rise following its post-September 11 recovery.
On a year to date basis, the CSFB/Tremont Hedge Fund Index posted a positive sum of 2.6%, whilst other indices - including the Dow Jones Industrial Index; the MSCI EAFE US$ Index; the MSCI $ World Index; S&P 500; and the NASDAQ - all showed double-digit decreases despite some improvement during October.
Managed futures outperformed all other strategies finishing the month up 3.4%. Commenting on the strategy, Robert Schulman, president of Tremont Advisers, said: The diversification and trend-following nature of this strategy thrives on sustained volatility and provides insurance against downside risk.
Performance for the CSFB/Tremont Hedge Fund Index - which comprises of 372 funds - and the nine style-based sector indices are calculated monthly.
*The index is reselected quarterly, and 8 funds were added in October and 11 were dropped. It is constructed using a database of over 2,600 hedge funds, including both US and offshore funds, but does not include funds of funds.
By Madhu Kalia
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