Business and Capital Market Analysis !!!

The world's hedge funds lost $100 billion (£66.45 billion) in assets in October alone as firms like Man were hit by a mass of investor redemptions.

Hedge funds have suffered from the biggest stock market losses since the Great Depression, while investor withdrawals have hugely accentuated the crisis.

Research by analysts Eurekahedge showed funds fell on average by 3.3% in October. The data echoes individual results from hedge fund managers.

London's Man Group, the largest publicly traded hedge-fund manager, reported assets under management, which stood at $70.3 billion as of 30 September, fell to $61 billion at the beginning of November, its lowest since March 2007.

Earlier this week, Sparx Group, Asia's biggest hedge-fund manager with $8.5 billion in assets, posted a first-half loss on redemptions and falling stock prices.

Its assets under management on a preliminary basis were 839.1 billion yen (£5.85 billion) at the end of last month, compared with a peak of 2 trillion yen in August 2006.

Nevertheless, hedge funds are performing better than global stock indexes.

The MSCI World index has lost 46% this year. In October, managers who trade futures and those who invest in Japan helped offset declines, Eurekahedge said.

The Eurekahedge Japan Hedge Fund Index was the best performer, falling just 0.8% last month, even as the benchmark stock index slid 20%.

Currencies played a role, Eurekahedge said. The yen strengthened more than 7% against the dollar in October, the biggest gain since October 1998 giving funds a chance to take advantage of currency moves to help stem losses by selling regional stocks.


Source :
1. Global hedge funds knocked back by $100bn in a month