Caution rules in long/short equity as year-end approaches

• Double-digit loss in long/short; but strategy has outperformed stocks
• Little mood to raise risk appetite as year-end approaches
• Related: CTAs flat as equities rise in October

Long/short equity performance has not impressed in absolute terms this year, with most funds sitting on a loss.

Assessments vary: the HFRI Equity Hedge index puts the loss to October at 11.3%, EurekaHedge at 10.1% and PivotalPath at 8.8%.