As October hedge fund indices point to devastating month....

Hedge Fund News New York: Late last week the release of the HFRX indices (Global Hedge Fund Index reported -9.26%) confirmed fears that October was even more devastating to hedge fund returns than the previous month. With the other major indices yet to issue finalized numbers the lone bright spot seems as though it may continue to be CTAs. With more than half of the funds reporting October returns Barclay's CTA Index estimate is +3.37% and +10.69% YTD, a ray of light below Barclay's Hedge Fund Index estimate for October (which currently stands at -6.85% and -18.26%YTD with 1023 funds reporting).

US-based Drury Capital offers five trading programs. The firm's Diversified Trend Following Program manages $153m in assets and returned +23.49% in October (+56.91% YTD). President and CEO Bernard Drury recently spoke with Opalesque about CTAs and systematic trading strategies.

Drury credits both the diversified space in which the program trades (across 70 markets with half the portfolio exposure in commodities and the other half in financial instruments) as well as the strategy (systematic trend following) for a track record that extends back to 1997 and boasts annualized returns of +15.54%.

The evolution from sector specialist to systematic trading
As a former grain trader who began his career at the Louis Dreyfus Corporation, Drury spent 20 years accumulating expertise in the fundamentals of the grain markets and has great respect for those traders who are sector specialists. However, while pursuing an executive MBA at the University of Chicago, his studies with Prof. Robin Hogarth in the area of decision making amidst uncertainty had a strong influence on him.

"I entered that U......................

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As October hedge fund indices point to devastating month....