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Beverly Chandler, Opalesque London:
Lyxor’s flash report for July shows that 11 of the Lyxor Strategy Indices, out of 14, ended the month
of July in positive territory, led by the L/S Equity - Long Bias
(+3.08%), the Event Driven - Special Situation Index (+2.63%)
and the Event Driven - Distressed Index (+2.09%). The Lyxor
Hedge Fund Index posted a positive performance of +1.32%
in July (+3.19% YTD).
Lyxor writes: "Financial assets recovered after the painful sell-off in June
and hedge funds posted solid results in July. The robust
performance was a welcome reversal from the 3.6% loss
hedge funds suffered last month, which marked one of the
toughest months since 2011. Several factors contributed to a
more normalized trading environment, which helped
performance. These include a stabilization of US rates,
support for growth from China’s authorities and solid earnings
in the US vs. expectations. Hedge funds cut beta to a year
low of 18 end of June (median equity beta of the Lyxor
platform). As markets stabilized and hedge funds became
more bullish, beta increased to 22 by mid-July. Despite the
increase, hedge fund beta is still below the 36% reached in
May, suggesting a relative degree of caution."
Looking specifically at Long/Short Equity funds, Lyxor found that they gained thanks to both positive
beta exposure to the market and increased dispersion
among stocks and indexes. L/S Equity Long Bias was the
best catego...................... To view our full article Click here
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