(Bloomberg) — Hedge funds that chase macroeconomic trends by investing in the stock, bond, currency and commodity markets posted their worst returns of the year in October as managers bet wrongly that the U.S. dollar would drop in value.
The funds declined by an average 0.86 percent last month, according to the Credit Suisse First Boston/Tremont Index. Some of the industry’s largest funds, including those run by money managers Paul Tudor Jones and Bruce Kovner, fell more than 2 percent.
“Macro funds were on the wrong side of the currency bet,” said Luis Rodriquez, head of risk management at New York-based Manhattan Family Office, which invests more than $1 billion for a wealthy family.
