Despite shedding his bearish outlook, Hugh Hendry’s CF Eclectica Absolute Macro Fund merely rose 0.14% in October. The macro fund is now down 2.5% for the year.

According to the brief performance summary given on the monthly letter, the hedge fund made the highest return on long developed market versus short emerging market positions. Currency trades lost the most for Eclectica in October, shorts in emerging market forex detracted which offset gains from short JPY and long AUD positions.

Losses in gold shorts

Eclectica also incurred small losses in gold and copper shorts. Hugh Hendry has been bearish on gold and gold miners for some time now.  The fund also lost in its fixed income positions.

Eclectica’s largest position as percentage of NAV are longs in U.S index futures. In fact, all of Eclectica’s top ten holdings are based on long and short futures. Among equities, Eclectica has positions in Lloyds Banking Group PLC (NYSE:LYG) (LON:LLOY), Tokyo Tatemono Co., Ltd. (TYO:8804), US Airways Group Inc (NYSE:LCC) and 3D Systems Corporation (NYSE:DDD).

Hugh Hendry Switching from bear to bull

In a recent investment conference, Hugh Hendry said that he is done with being a bear when everybody else is riding the bull market. He expressed regret that he is turning away from the crux of his investment philosophy, adding that, “I cannot look at myself in the mirror; everything I have believed in I have had to reject. This environment only makes sense through the prism of trends.”