Sun, Apr 26, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Lyster Watson Hedge Fund Strategy indices suffered losses accross the board in August

Friday, September 16, 2011
Opalesque Industry Update - Reports from just over 1/3 of hedge funds in Lyster Watson's universe show that hedge funds suffered large losses across the board in August.

Declines in equity strategies, while only about half of their long-only counterparts, exceeded 4% in all geographic regions and drove year-to-date performance below zero percent. Fears of a return to recession drove down the prices of high yield bonds and caused credit and distressed managers to post losses, as well. Volatility Arbitrage managers failed to benefit from the sudden shift in the direction of volatility and lost more than even equity managers. Only Macro managers found a way to benefit from the carnage, as they posted their second consecutive gain in an otherwise difficult year.

Months like August 2011, in which almost all funds experience significant losses, usually cause managers to adopt more cautious positions. While this protects them from more severe losses in the future, it also prevents them from recovering losses as quickly as they accrued them if market conditions improve. This suggests more muted results for September irrespective of the direction of equity, credit, and commodity markets.

Lyster Watson Hedge Fund Strategy Indices are a series of non-investable benchmarks designed to be representative composites of randomly generated portfolios of hedge fund strategy peers, factoring in both volatility and return.

(presss release)

Performance tables: Source

BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner