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

Political turmoil has limited impact on hedge funds

Thursday, May 25, 2017

Komfie Manalo, Opalesque Asia:

The markets' knee-jerk reaction following former FBI Director James Comey's memo alleging that the U.S. President tried to influence the FBI had limited impact on hedge funds as the Lyxor Hedge Fund index was up +0.4% (+1.6%YTD) from the week covering 09 May to 16 May 2017, with global macro and special situations outperforming.

In its latest Weekly Briefing, Lyxor Asset Management said that macro managers benefitted from the rise in oil prices and European equities. Dispersion edged higher across L/S equity funds' returns as the VIX surged amid political stress. Variable biased managers stand out.

Lyxor AM senior strategist Jean-Baptiste Berthon, commented, "Macro funds outperformed on their long European equities and long energy. Special situations continued to make steady progress. L/S equity fund returns were mixed, reflecting heterogeneous impact from the sudden market rotation."

He added that the volatility in U.S. bonds and dollar could rise ahead of the June Fed meeting and the start of the U.S. budget negotiations. CTAs' and macro's long bonds and long USD exposure vs. DM crosses are vulnerable to speculative political developments.

"We reiterate our preference for micro over macro approaches. We note that the ending earning season and the sudden sector rotations might result in more challenging conditions for Market Neutral funds," Berthon said.

Political re......................

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