Many of the world’s biggest hedge funds extended their losses last month, as a selloff in technology stocks, a government bond meltdown and Brazil’s shock election combined to deliver widespread volatility and one of the broadest declines since the coronavirus pandemic. Millennium Management’s multistrategy hedge fund lost 2.3% in October, according to people with knowledge of the matter. Marshall Wace’s Eureka hedge fund declined 5.4% last month, shrinking year-to-date gains to 5.3%. Exodus Point Capital Management lost 2.4%, Dymon Multistrategy was down 1.8%, while equity focused North Rock fell 2.3% over the month. Credit hedge fund Arini was on track for its worst ever monthly loss after being down 12.1% through Oct. 23.
Citadel was a notable exception among major managers, notching gains of 1.7% in its main Wellington fund to improve its year-to-date gains to 15.3%. A series of shocks roiled markets in October, with violent protests in France worsening a selloff in government bonds while renewed AI jitters and disappointing earnings drove declines in technology stocks. Brazil’s election caused major price moves after Flávio Bolsonaro unexpectedly led the first round only to be bested by President Luiz Inácio Lula da Silva in the runoff on October 25.
Still, there were some notable winners too. The $8.2 billion Quantedge hedge fund soared 7.2% to boost year-to-date gains to 60%, with successes during the month led by commodity, fixed income and long-short market-neutral strategies.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing