Mon, May 30, 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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit