Key Takeaways
- • Millennium Management's flagship multistrategy fund declined 2.3% in October, while Marshall Wace's Eureka strategy fell 5.4%, cutting its year-to-date gain to 5.3%, according to Bloomberg.
- • Arini Capital Management's flagship credit strategy was down 12.1% through 23 October, on course for its worst monthly performance on record.
- • ExodusPoint Capital Management lost 2.4%, Dymon Multistrategy declined 1.8% and equity-focused North Rock Capital fell 2.3% during the month.
- • Citadel's flagship Wellington fund gained 1.7% in October, lifting year-to-date returns to 15.3%, while Quantedge rose 7.2% and is up 60% for 2026.
- • JPMorgan's positioning intelligence team described October as an exceptionally challenging period for hedge funds, with few strategies escaping the volatility.
Summary
Some major hedge funds recorded losses in October as a sharp technology selloff, government bond market turmoil and election volatility triggered one of the broadest industry downturns since the Covid-19 pandemic, according to a report by Bloomberg. The market turmoil was driven by renewed concerns over AI-related valuations, rising sovereign bond yields amid political instability in France, and sharp currency movements following Brazil's unexpected election outcome.
Multistrategy platforms were among the hardest hit. Millennium Management's flagship multistrategy fund declined 2.3% during the month. Marshall Wace's Eureka strategy fell 5.4%, reducing its year-to-date gain to 5.3%. ExodusPoint Capital Management lost 2.4%, and Dymon Multistrategy declined 1.8%. Equity-focused North Rock Capital fell 2.3%.
Credit-focused managers also suffered. Arini Capital Management's flagship strategy was down 12.1% through 23 October, putting it on course for its worst monthly performance on record. According to the report, the losses reflected widespread pressure across equity, credit and macro strategies, as crowded positions were disrupted by sharp market reversals.
Citadel was among the notable exceptions. Its flagship Wellington fund gained 1.7% in October, lifting year-to-date returns to 15.3%. Quantitative manager Quantedge gained 7.2% during the month, bringing its 2026 return to 60%, supported by commodity, fixed income and market-neutral strategies. Some systematic and diversified strategies continued to generate positive returns.
JPMorgan's positioning intelligence team described October as an exceptionally challenging period for hedge funds, with few strategies escaping the volatility. The divergence in performance highlights the difficulties facing highly leveraged multistrategy platforms during simultaneous market shocks.
Multistrategy platforms were among the hardest hit. Millennium Management's flagship multistrategy fund declined 2.3% during the month. Marshall Wace's Eureka strategy fell 5.4%, reducing its year-to-date gain to 5.3%. ExodusPoint Capital Management lost 2.4%, and Dymon Multistrategy declined 1.8%. Equity-focused North Rock Capital fell 2.3%.
Credit-focused managers also suffered. Arini Capital Management's flagship strategy was down 12.1% through 23 October, putting it on course for its worst monthly performance on record. According to the report, the losses reflected widespread pressure across equity, credit and macro strategies, as crowded positions were disrupted by sharp market reversals.
Citadel was among the notable exceptions. Its flagship Wellington fund gained 1.7% in October, lifting year-to-date returns to 15.3%. Quantitative manager Quantedge gained 7.2% during the month, bringing its 2026 return to 60%, supported by commodity, fixed income and market-neutral strategies. Some systematic and diversified strategies continued to generate positive returns.
JPMorgan's positioning intelligence team described October as an exceptionally challenging period for hedge funds, with few strategies escaping the volatility. The divergence in performance highlights the difficulties facing highly leveraged multistrategy platforms during simultaneous market shocks.
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