A report released by investment database and technology solutions firm eVestment indicates that the hedge fund industry is going through a tremendous growth period.
As the hedge fund industry enter Q4 with its second best month of the year with an average growth rate of 1.5%, Atlanta-based eVestment’s October Hedge Fund Performance report shows that the sector is on pace to return 8.6% for the year, ahead of 2012’s 7.5% increase.
Directional equity strategies continue to dominate the industry in October, however emerging markets – rather than developed markets – produced the larger gain with a 2.7% post last month. Emerging markets, which include China, emerging Europe, Brazil, Africa/Middle East and India, all posted positive returns in October with Africa/India leading the pack with an average return of 5.87%.
In addition, long/short equity funds are on track to post their largest return since 2009 when it gained 26.7%.
Founded in 2000, eVestment acquired hedge fund analysis provider Pertrac and cloud-based hedge fund technology provider Fundspire last year. It now offers one of the world’s largest traditional and alternative investment databases.