John W. Henry’s longest standing fund posted a +27% return for October 2008. Yes, up nearly thirty percent for one month in one of the worst months in the history of markets (S&P down -17%). Sure, Henry is no longer trading the billions upon billions he once was, but Henry can’t be blamed for the “fast money” of the last few years that ran away from his trend following off to investment banks and long only hedge funds (geared with 30:1 leverage) trying to take advantage of a real estate market that supposedly could never go down. Looks like trend following was validated…again. My new theory? The next time trend following funds go into an extended drawdown look around because there is most likely a bubble somewhere else about to pop. And when the pop happens…the winners seem to always be predictable.