Hedge funds gained 1.32 percent during the month of October. Meanwhile underlying markets, as represented by the MSCI AC Word Index (Local), gained 2.56 percent over the same period, according to the Eurekahedge Hedge Fund Index.
Roughly 77 percent of the underlying constituent hedge funds for the Eurekahedge Hedge Fund Index were in positive territory in October thanks to a broad-based rally in global equity markets and an improving investor risk appetite.
Asia ex-Japan managers led the performance among regional mandates this month, and were up 2.76 percent while CTA/managed futures managers topped the table across strategies, gaining 2.73 percent over the same period.
The trading scene in October was affected by a series of macro data, central bank announcements, OPEC and to a lesser extent the passage of Trump's tax reform and choice of next Fed chair. Geopolitical tensions surrounding Iraq and expectation of an extensive OPEC production cuts led to some support for oil prices. Investor optimism remained buoyed as the Trump administration's proposed tax reforms made some progress in the Senate, the report said.
While lacklustre inflation data remains a concern for a possible rate hike in December, strong macroeconomic data in US could put the central bank on track for its next rate hike.
However, given the impact of the hurricane seasons on US economy this year, macroeconomic data could likely surprise on the downside, in which case it will be interesting to see if the Fed can follow up on its resolve to normalize rates.
In the Eurozone and elsewhere in the world, economic data for Q3 2017 was largely encouraging with indicators pointing towards global economic expansion. Over in Japan, Abe's expected election victory pushed Japanese stocks to all-time high with Nikkei 225 rallying sharply on expectations of continuity in Abe's economic and monetary policies, the report said.
CTAs, Macros, Hedge funds, Eurekahedge Hedge Fund Index, Cayman Islands