Hedge funds rebounded last month as the Lyxor Hedge Fund Global Index rose 0.75 per cent, taking the year-to-date figure to 5.85 per cent.

October’s best performing strategies were the Lyxor L/S Equity Long Bias Index, gaining 5.59 per cent; the Lyxor Special Situations Index, up 3.76 per cent; and the Lyxor Fixed Income Arbitrage Index, which rose 2.91 per cent.

Special Situations has seen the sharpest decline this year, with a 14.16 per cent drop.

The L/S Equity Short Bias strategy performed worst in October, dropping 3.37 per cent, and is now down 11.12 per cent year-to-date.

Earlier this month, the Credit Suisse Liquidity Alternative Beta Index reported a 4.17 per cent hike in October after several months of decline, thereby regaining some of the heavy losses made in the third quarter.