Hedge Funds Decline 0.5% in October But Beat S&P

Hedge funds dipped 0.5% in October but bested the S&P 500’s 2% drop and Nasdaq’s 3.6%, Hennessee Group said.

Hennessee co-founder Charles Gradante said the market has risen over the past seven months primarily due to money moving back into the market and that “we need to see earnings growth for the rally to be sustainable.”

Lee Hennessee, the firm’s other co-founder, said managers are mixed as to the next direction of the market, split between those “that are defensively positioned, anticipating a market correction, and those that want to participate in a potential fourth-quarter rally.”

For reprint and licensing requests for this article, click here.
Fund performance Money Management Executive
MORE FROM FINANCIAL PLANNING