Hedge funds did not fare well in October mostly because of deleveraging and they posted a 6.30% drop in returns, which is only slightly better than September’s record losses, according to the Credit Suisse/Tremont Hedge Fund Index.

The returns for September were a 6.55% loss for hedge funds and, including October's results, brings the year-to-date return to a 15.4% loss, according to the index. September represented the second worst monthly performance on record in a decade.