Barclay Hedge Fund Index Extends Winning Run

by Carla Johnson, Investors Offshore.com

09 November 2006

Most of the hedge funds tracked by the Barclay Group returned to winning ways in October, as the Barclay Hedge Fund Index recorded its fourth successive gain.

According to Sol Waksman, founder and president of the Barclay Group, 90% of the hedge funds in the Barclay Hedge Fund Index posted gains in October, as the overall index gained 1.84%.

“October was a positive month for the overwhelming majority of hedge funds,” Waksman commented.

“Any month we see that 90% of the funds reporting to Barclay are profitable, we know everything has gone right," he added.

Overall, 17 of Barclay’s 18 hedge fund indices gained value in October. Only the Equity Short Bias Index was in negative territory, dropping 4.31%.

“All 31 of the MSCI US Equity Indexes measured gains at month-end,” said Waksman. “Short sellers were swimming against a very strong current.”

The best performing strategies in the Barclay Index last month were Equity Long Bias (up 3.12%), Emerging Markets (2.64%), the Healthcare and Biotechnology Index (2.21%), and Technology (2.19%).

"Global equity markets also had a banner month," Waksman observed.

"Other than the Netherlands and Korea, all Developed and Emerging Market equity indexes were profitable in October," he noted.

The Barclay Hedge Fund Index is now up 8.74% for the year.

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