Wed, Jun 29, 2016
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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t