Hedge Funds Killed On Healthcare Stocks; US L/S Gross Leverage At Post 08 High

Hedge fund returns outpaced the stock market in October, but were still negative, according to a Morgan Stanley Prime Brokerage report. With stocks looking to break nine straight days of losses on Friday, the report reveals hedge funds were largely involved in starting the short parade. The S&P 500 give up a slight -1.94% in October as hedging the upcoming Presidential election and potential interest rate volatility are the general fundamental reasons attributed to the near 3% selloff that occurred over the last nine days. Also see Q3 2016 Hedge Fund Letters   Short exposure helps Long / Short hedge…