Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk appetite rebound pushes most hedge fund strategies up

Tuesday, November 28, 2017

Komfie Manalo, Opalesque Asia:

The rebound in risk appetite was supportive for most strategies, in particular, CTAs, macro and special situations, Lyxor Asset Management said in its Weekly Briefing. The Lyxor Hedge Fund Index jumped 0.8% from 14 November to 21 (+4.5% YTD).

The report added that global macro funds delivered strong returns thanks to their allocations in equities (long), FX (short EURUSD, long EM crosses vs. USD) and commodities (long energy and copper). Special situations outperformed, +2%, on the back of rewarding positions on Sotheby's and Facebook. On the M&A front, the Time Warner/AT&T deal was among the best contributors.

Lyxor AM Senior Strategist Jean-Baptiste Berthon commented, "Risk aversion was rapidly overcome as Tech and Energy stocks rallied. Hedge funds were strongly up, driven by the performance of special situations, CTAs and macro funds. The variable L/S equity funds recorded strong gains due to their long books, while quant funds lagged. Emerging market specialists outperformed in line with the strong performance of the underlying market."

Berthon added that hedge funds' positions are heterogeneous. CTAs neutralized most of their UK exposures. They are marginally short GBP, modestly long equities and bonds. By contrast, macro funds are more decisively short GBP and bonds, but moderately long equity. They expect higher rates, a weaker economy, and some FX-upside for FTSE. While unce......................

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