Stock Hedge Funds Slump Harder Than Market in October Reversal
- Category fell 8.7% this month through Oct. 23, Goldman says
- Short bets may pay off for some managers after long bull run
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Stock hedge fund managers have been complaining for years about the difficulty of keeping up with the S&P 500 Index in a roaring bull market. This month, they’ve outpaced the U.S. benchmark -- but in the wrong direction, racking up even bigger losses.
Equity long-short funds fell 8.7 percent through Oct. 23, according to a report from Goldman Sachs Group Inc., about 3 percentage points more than the S&P. For the year, the funds were down 6.2 percent, the investment bank said, based on data from its hedge fund clients, while the index was still in the black.