Barclays Hedge Fund Index Falls 8.04% in October
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According to the Barclays Hedge Fund Index, hedge funds on average dropped 8.04% in October and have lost over 14.44% during the past two months. BarclayHedge which created the index said, "The ‘Great Deleveraging’ continued in October."
Sol Waksman, president of BarclaysHedge also said, "Investors as well as hedge funds and banks continued selling in order to reduce risk exposure in their portfolios and raise cash."
Additionally, the Barclay Emerging Markets Index was down 15.83% in October, and has lost 25.11% in just two months.
"It’s estimated that US investors hold some $5 trillion in foreign equities," says Waksman. "Those holdings are now being liquidated."
Waksman said the only successful strategy in '08 has been going short the market. The Barclay Equity Short Bias Index had a strong month, gaining 17.21% in October.
The Barclay Hedge Fund Index year-to-date has lost 19.30%, compared to a loss of 32.84% in the S&P 500.
BarclayHedge (formerly The Barclay Group) was founded in 1985 and actively tracks 6,700 hedge funds, funds of hedge funds, and managed futures programs.
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