Komfie Manalo, Opalesque Asia:
Most hedge funds and CTAs posted positive returns last week as the
markets started their rebound and progressively recouped their losses
after a challenging beginning in August on the back of higher risk
aversion. Easing of geopolitical tension in Iraq and Ukraine fueled
renewed investor appetite for risk, said Lyxor Asset Management in its weekly briefing.
According to the briefing, the amplitude of the rebound was however
capped by a weaker global macro momentum: a flat and disappointing
dynamic in EU, a probable peak in U.S. and the fragilities of the Japan
recovery, keeping risk assets under pressure.
Lyxor AM head of research Philippe Ferreira commented, "In this context,
Hedge Funds which are overall still long risk, behaved as expected by
recovering from the three previous difficult weeks. The Lyxor Hedge
Funds Index is up 1.2% this week, back to positive territory on a year
to date basis."
At a strategy level, Long Term CTA is the best strategy this week,
posting a performance of +3.0%. It was a perfect week as gains came from
all of their buckets: long Equities, long Rates, short Energy and short
Event Driven funds also performed well with Merger Arbitrage index up
1.6% and Special Situation Index up 1.8% this week. Despite the troubled
past several weeks and the termination of several large deals,
reinforced hedges limited part of the losses.......................
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