Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Macro hedge funds and CTAs outperform in December on strong dollar

Monday, January 16, 2017

Komfie Manalo, Opalesque Asia:

The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hiking interest rates but the impact on the fixed income asset class was rather muted.

This environment was supportive for hedge funds. The Lyxor hedge fund index was up 1.3% in December, led by global macro and CTA managers.

Philippe Ferreira, Director of Senior Cross-Asset Strategist at Lyxor AM, commented, :Going forward, we believe that hedge funds could experience a better environment in 2017 compared to 2016, which was a challenging year overall. The new U.S. administration is aiming at extending the economic cycle with supportive fiscal measures and the removal of regulatory barriers to investment. Meanwhile, we expect the Fed to stay accommodative overall and both bond yields and energy prices to remain supportive for growth. There is thus room for improved economic expectations to be met."

Macro specialists benefitted from both exchange rate movements and equity allocations. Their short stance on the EUR, GBP and JPY vs. USD was rewarding considering the fact that the dollar continued to edge higher against most currencies. Meanwhile, their preference for European and Japanese equities was also a source of gains as both markets outperformed U.S. equities in D......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1