Mon, Oct 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Market rebound helps hedge funds to bounce back

Tuesday, April 17, 2018

Komfie Manalo, Opalesque Asia:

The market rebound supported the hedge fund industry last week, Lyxor Asset Management said in its Weekly Report. CTAs strongly recovered thanks to the rise in oil prices and U.S. Treasury bond yields, said Lyxor AM senior strategist Philippe Ferreira.

"Overall, models remained moderately exposed to major asset classes amid depressed trend-following conditions. They now hold neutral exposures to equities," he added.

CTAs are back as a diversification strategy

Lyxor said that L/S market neutral funds delivered also healthy returns last week as momentum stocks recovered. The outperformance of growth vs. value stocks helped the strategy outperform year-to-date. Directional strategies such as special situations are also up month-to-date, while merger arbitrage funds were resilient despite the widening of deal spreads.

Recent market developments saw an easing of market tensions as the markets head into the U.S. earnings season. Yet, geopolitical concerns remain and trade wars have legs, in Lyxor's view. The overall backdrop is tactically supportive for risk assets after the recent 6% drawdown of the MSCI World since the peak on January 26th.

Ferreira said, "Our risk appetite remains limited from a strategic standpoint. The 3-month correlation between equities and bond returns remains in positive territory, limiting portfolio diversification options. In the hedge fund space,......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Stock slump aftermath: Hedge funds got caught long and wrong before stock slump, The huge 'blackout' that may be deepening market turbulence, Market veterans don't see the bottom yet: 'More selling is yet to come', Hedge funds hold up in rout as defensive stance finally pays off, Rally erupted in gold market days after funds made big bear bet[more]

    Hedge funds got caught long and wrong before stock slump From Bloomberg: In a moment of bad market timing, hedge funds had increased their bullish bets on U.S. stocks to the highest since February, and second-highest in five years, just before last week's sell-off. Speculative net

  4. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  5. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori