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Reproduced from eVestment: Table: Axios Visuals

Hedge funds again lagged the returns of U.S. stocks as well as a combined fund of 50% global stocks and 50% global bonds in the third quarter and in October, according to data from eVestment.

Why it matters: Hedge funds aim to deliver consistent returns for investors that outperform during times of market stress, but despite increased uncertainty and geopolitical tensions in Q3, the industry saw negative returns on an overall basis.

  • Even equity hedge funds on average underperformed the S&P 500, while financial derivatives funds were the worst performing of all categories last month, showing a 1.33% decline.
  • The only hedge funds to outperform the S&P in October were those with large exposure to China, India and Russia.

What it means: With the stock market again in favor, investors are likely to pull even more money out of hedge funds given their lackluster performance during the third quarter.

The big picture: Year to date, not a single major category of hedge fund has outperformed the S&P and the only hedge funds that delivered better returns than the 50% global bonds and equity fund were those dedicated to Chinese and Russian assets.

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Updated 35 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

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  3. States: Florida smashes single-day record for new coronavirus cases with over 15,000 — Miami-Dade mayor says "it won't be long" until county's hospitals reach capacity.
  4. Public health: Ex-FDA chief projects "apex" of South's coronavirus curve in 2-3 weeks — Coronavirus testing czar: Lockdowns in hotspots "should be on the table"
  5. Education: Betsy DeVos says schools that don't reopen shouldn't get federal funds — Pelosi accuses Trump of "messing with the health of our children."

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Lauren Boebert posing in her restaurant in Rifle, Colorado, on April 24. Photo: Emily Kask/AFP

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Photo: Tasos Katopodis/Getty Images

Senate Judiciary Chairman Lindsey Graham (R-S.C.) tweeted Sunday that he will grant Democrats' request to call former special counsel Robert Mueller to testify before his committee.

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