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

CTAs' contrarian positions reap rewards

Tuesday, October 17, 2017

Komfie Manalo, Opalesque Asia:

It was another positive week for hedge funds. The Lyxor Hedge Fund Index delivered healthy returns up 0.4% (+2.5% YTD) from 03 October to 10 October, with CTAs outperforming as the CTA Broad Index gained 0.9% (-2.3% YTD).

CTAs' contrarian positions were rewarded during the week, in particular through their allocation in bonds (they are long, mainly in Europe), in FX (they are USD short, especially vs. non-G10 currencies) and in commodities (they are long gold). They also benefitted from their more cyclical exposures to equities and metals. The equity bucket paid off, Lyxor Asset Management said in its Weekly Briefing.

Jean-Baptiste Berthon, senior strategist at Lyxor AM commented, "Global macro funds continued to recover from previous losses, supported by long Japanese and emerging market equities. They also thrived from their long exposure to commodities, including gold, energy and copper. However, some profits were offset by losses in FX and fixed income."

He added that diversified L/S equity and event driven managers continued to be supported by bullish equities. During the week, Asian and emerging market funds L/S equity outperformed.

Focus on global macro funds as more directionality is expected

Lyxor noted that cracks in the reflation trade emerged after the marginally dovish Fed's minutes were released and with doubts intensifying about the tax-cut package.......................

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