October was a risk-off month for the equity markets, with the Russell 2000 and Nasdaq experiencing losses, particularly in the energy and consumer sectors.
Hedge funds, especially equity long/short funds, have added value in recent months. Systematic equity strategies benefited from market volatility, while fundamental strategies lagged.
The hedge fund industry is growing, and risk levels have been reduced in recent years due to elevated market volatility and uncertainty in the macroeconomic environment.
Hedge fund risk levels are currently low compared to historical averages. Some investors are shifting their investments from North America to Europe and DM Asia.
