|
Komfie Manalo, Opalesque Asia: Hedge funds ended the month of May up 0.5% but still down -2.3% YTD, according to Lyxor Asset Management. Macro managers outperformed, supported by the rebound in global equity indices and the appreciation of the USD against the GBP, EUR and JPY.
Long/short equity funds also posted strong returns, up 0.4%, with variable bias and long bias managers leading the pack. The lower net exposure of European managers compared to their U.S. peers explains their milder returns. CTAs were resilient as gains on the fixed income bucket offset losses due to equity exposure.
Philippe Ferreira, senior strategist at Lyxor AM, commented, "Over the recent weeks, hedge funds have remained broadly defensive in anticipation of key announcements in June that may disrupt market conditions. As such, they are definitely not adding risk to their portfolios."
He added that the Brexit referendum is the most prominent event among the near term potential disruptors. In response, several European long/short equity managers have decided to significantly downsize their exposure to UK assets ahead of the vote. Meanwhile, CTAs and Macro managers maintain large net short positions on the GBP/USD. At the end of May, CTAs added to their GBP/USD shorts while Macro managers slightly reduced their short positions on the currency pair.
The mid-June FOMC meeting and the associated summary of economic projections will also be closely monitored by managers amid signals ...................... To view our full article Click here
|
RSS
