MSCI Hedge Fund Indices Post Moderate Returns in October

The year-to-date total now sits at 2.70%, well below the returns seen in 2003 when the index brought in 14.75% returns.

Breaking hedge fund performance down by process group, the MSCI Directional Trading Index performed best, posting 2.01% returns in October. Year-to-date figures for this index are not nearly as stellar however, with returns since December 31, 2003 down 0.84%. The MSCI Relative Value Index performed the worst in October, losing 0.11%. The best year-to-date performance by process group is seen with the MSCI Multi-Process Group Index, which is up 5.78% over the past nine months.

The MSCI Hedge Fund Diversified Index performed the best in October when asset class was considered, posting 1.67% returns for the month. Year-to-date figures for asset class show that, overall, the MSCI Hedge Fund Fixed Income Index has the best returns, showing a 7.28% return since December 31, 2003.

Geographically, most MSCI Hedge Fund Indices were stagnant, with the best returns being seen in the MSCI Hedge Fund Emerging Markets Index (0.92%). Japanese-focused hedge funds suffered the worst in October, with the MSCI Hedge Fund Japan Index losing 1.38%. Regarding 2004 performance however, the Japanese index was still up the most out of all geographically-based indices, posting 7.93% returns.

The MSCI Hedge Investable Index was up 0.40% in October, bringing the yearly returns to 0.67%.