Hedge funds added to this year's gains in October
LONDON (Reuters) - Hedge funds added to their performance gains in October as stock markets continued to rally, boosted by the United States avoiding a default on its debt and further signs the world's largest economies are growing, new data showed on Tuesday.
According to the SS&C GlobeOp Hedge Fund Performance Index, the average fund returned 1.06 percent last month, bringing year-to-date gains to 9.93 percent.
The index rose 0.1 percent in October 2012 and was up 7.78 percent in the 10 months to end October last year.
Hedge funds are enjoying a strong 2013, with most of the main strategies making their clients money and leaving managers to collect the lucrative performance fees they charge. However, the gains come in a year when the major equity indexes have risen by far more, with the MSCI World Index up 22.5 percent.
Meanwhile, during the past month investors added slightly more to hedge funds than they redeemed, according to the SS&C GlobeOp Capital Movement Index.
"Capital flows for the month were slightly positive, with subscription levels reaching a 10-month high," said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies, said.
(Reporting by Tommy Wilkes; editing by David Evans)