Credit Suisse Index Co., Inc. said that final performance numbers show hat hedge funds lost about 6.3% in October.

According to Oliver Schupp, president of Credit Suisse Index Co., the final performance for the Credit Suisse/Tremont Hedge Fund Index was a 6.3% drop for October. The index’s negative performance was driven primarily by losses in the emerging markets and fixed income arbitrage sectors, he reported.

“Fund deleveraging continued to be a key theme in October, as volatility created a difficult trading environment for hedge funds,” he said.

“While spikes and contractions in the market can provide an opportunistic environment for managers that arbitrage mis-pricings in volatility, they can also create a very challenging trading environment.” Schupp explained.

The dedicated short bias sector continued to do well, up over 9% for October and over 13% year to date, he added.