Tue, Oct 21, 2014
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   |   

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: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Sparx optimistic about outlook for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: According to SPARX, there are causes to be optimistic about the outlook for the Japanese market and the country's economy in general. Sparx Asset Management is a Tokyo-based asset manager, part of