Hedge funds edged higher in October, building on positive momentum and increased exposure to risk and returning 1.80 per cent overall, according to the Lipper Hedge Fund Composite Index.

October’s return brought year-to-date performance to a positive 5.13 per cent.

On a rolling-period basis year-on-year performance at the end of October came in at a healthy 6.13 per cent.

Managed futures (+3.04 per cent) ranked at the top of the monthly performance league table for October. 

After holding the top spot in September the long-bBias strategy performed solidly in October, returning 2.78 per cent month on month and 8.06 per cent year to date.

In line with emerging stock market performance the emerging markets strategy posted a healthy return for October, up 2.28 per cent month on month and 7.36 per cent year to date. Emerging markets strategies benefited from stock market rallies in all of the emerging regions.

Multi-strategies consolidated September’s gains, delivering a healthy 1.50 per cent month on month (+5.21 per cent year to date).

Managers in fixed income arbitrage (+1.05 per cent month on month) benefited from US curve-steepening trades as the longer end of the US Treasuries yield curve rose 31 basis points (bps).