Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Lyxor Global Hedge Fund index up 2% in September, 2.8% YTD

Monday, October 18, 2010
Opalesque Industry Update - The Lyxor Global Hedge Fund index, an investable index based on Lyxor’s hedge fund platform which tracks the overall hedge fund universe, was up +2% in September, lifting year to date gains to 2.8%.

Financial markets featured strong trends during the month of September. US equities rallied hard, as did the USD prices of commodities (including precious metals) and foreign currencies such as the euro. Credit market returns were positive but less extreme, with High Yield posting larger gains than Investment Grade. Treasuries were virtually flat on the month.

The Event Driven space provided generally positive returns in September. The Lyxor Special Situations Index gained 4% on the back of equity and credit market gains (with some help from gold); it was the strongest performing Hedge Fund index over the month. Post-reorganization equities, for example, benefited from the positive environment. The Merger Arbitrage Index gained 1.9% as spreads tightened. The Distressed Index was up 0.5%.

The Lyxor L/S Equity Long Bias Index was up 3.9% on the month. Long Bias managers had maintained their exposures during the latter part of the summer and were thus poised to benefit from September’s solid gains in sectors such as basic materials and commodities. The L/S Equity Variable Bias Index was up 1%. Many managers in this space remain defensively positioned despite increasing net exposures over the month of September.

The L/S Equity Market Neutral and Statistical Arbitrage Indexes were both up 0.1%. The Market Neutral Index is the best performing L/S Equity Index year-to-date (+1.6%), reflecting some persistent trends within equities (e.g., Value vs. Growth). Life remains difficult for Statistical Arbitrage managers (the Index is down 2% year-to-date), as correlations among stock returns remain at historically extreme levels and volatility is low.

The Lyxor Long-Term CTA Index continues its run of solid performance, gaining 2.1% (+6.7% on the year). Many of these managers benefited from the persistent equity, commodity, and FX trends. The Short-Term CTA Index was up 0.5%, although the year-to-date performance of 0.4% signals the difficulty some of the managers in this space have experienced. Significant performance dispersion among Short-Term CTAs continues.

The Lyxor Global Macro Index was up 2.5%. Managers with a long commodity bias or short dollar bias readily found traction with these themes.

(press release)

www.lyxorhedgeindices.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo