•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

The surprise victory of Donald Trump in the recent U.S. presidential election has translated into a rise in risk assets far above expectations. Hedge funds were slightly down as of the week ending November 8, with the Lyxor Hedge Fund Index down 0.4% (-2.2% YTD) with three strategies out of five posting negative returns. Overall, dispersion among strategies was low.

"On the one hand, strategies with low directionality posted losses.", said Philippe Ferreira, senior strategist at Lyxor Asset Management. "Event driven was down (-0.6%), particularly in the merger arbitrage segment (-1%), and L/S equity market neutral suffered (-1.5%). Global macro retreated as well. On the other hand fixed income strategies (0.4%) were up, supported by gains in U.S. high yield. CTAs were flat, both in the long term and short term segments."

Market reaction on Trump’s win

Lyxor said that after the initial adverse movements, equities rallied and bond yields jumped as Trump’s initial statements reassured markets, calling for unity and pledging that he will be the "president of all Americans".

Cyclical sectors have done better than defensive sectors (except health care stocks which have done well) as looser fiscal policy is expected to support economic activity, it said. Coupled with the possibility that the Trump administration will implement protectionist trade policies, expectations of fiscal......................

To view our full article Click here