Hedge Fund Returns Show Improvement In November

by Carla Johnson, Investors Offshore.com

29 November 2005

European hedge funds returns have bounced back from a miserable October as rising equity prices helped hedge fund managers to post gains during the month of November, according to EuroHedge, a hedge fund research company.

While EuroHedge is not due to report November performance data for its index of hedge funds until late December, its managing editor, Neil Wilson, told Reuters that the past month has been good for most hedge funds following a 1.17% fall in October.

For the ten months to the end of October, the EuroHedge Composite Index is up 5.92%. The index rose by around 1.25% on average between June and September.

"They had a strong run between June and September, and there was a correction in October when there was an equity reversal," noted Mr Wilson.

"October losses have mostly been recovered," he added.

Data from Chicago-based Hedge Funds Research shows that average hedge fund returns are up more than 1.5% so far this month, which compares to losses of 1.8% in October.

Managed futures funds, which use computer models to make directional bets on stock markets, currencies, commodities and bonds, have fared the worst so far this year. According to the EuroHedge index, these funds lost 1.47% in October and have gained just 1.43% during the first ten months of the year.

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