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

Komfie Manalo, Opalesque Asia:

The Lyxor Hedge Fund Index was in positive territory in October, highlighting the fact that alternative strategies continue to be attractive in such a complex environment, said Philippe Ferreira, senior strategist at Lyxor AM, in his November briefing to investors.

Ferreira said that October was particularly supportive for global macro funds, which almost erased their year to date losses in a single month. The top contributors to their stellar performance last month included a short duration stance in fixed income and long positions on the USD vs. EUR and GBP in FX. Meanwhile, for macro managers investing in equities, their preference for European and Japanese equities vs. U.S. equities also paid off in October.

He commented, "Over the course of October both equities and bonds experienced a drawdown globally. As a result, the correlation between both asset classes was positive. This unusual pattern translates the rich valuation of traditional assets. Yet, the looming U.S. presidential election may have also influenced developments in financial markets. Actually, the recovery of Donald Trump in election polls since mid-October was accompanied by higher risk aversion."

On a negative note, CTAs underperformed in October as a result of their long duration stance in fixed income and short energy in commodities, which they shaved off aggressively over the course of October. At present, th......................

To view our full article Click here