19.10.2010 Lyster Watson Alpha Indices show large September gains for Asia (+5.60%) and emerging markets (+5.60%) hedge funds
Opalesque Industry Update - LW / True Alpha Hedge Fund Indices, presented below, are a series of non-investable benchmarks designed to be a representative composite of randomly generated portfolios of hedge fund strategy peers, factoring in both volatility and return. The performance of these indices are not reflective of discretionary fund-of-funds portfolios, nor are they intended as benchmarks for fund-of-funds portfolios.

 

 

 

Returns

Volatility

Sharpe Ratio

 

Strategy Indices

MTD

YTD

1-Year

1-Year

5-Year

 

Directional

 

 

 

 

 

 

LW/True Alpha Credit Fixed Income Index

1.10%

9.64%

15.76%

4.89%

0.71

 

LW/True Alpha Directional Macro Index

3.00%

4.16%

5.27%

3.81%

1.29

 

LW/True Alpha Long/Short Equity Developed Asia Index

5.60%

5.55%

8.39%

10.04%

0.47

 

LW/True Alpha Long/Short Equity Emerging Market Index

5.60%

8.41%

14.59%

10.84%

0.70

 

LW/True Alpha Long/Short Equity Global Index

5.27%

4.63%

7.47%

9.09%

0.44

 

LW/True Alpha Long/Short Equity North America Index

5.24%

4.82%

8.48%

10.27%

0.34

 

LW/True Alpha Long/Short Equity Western Europe Index

3.10%

2.88%

3.47%

6.47%

0.38

 

Event-Driven

 

 

 

 

 

 

LW/True Alpha Distressed Investment Index

3.10%

11.98%

19.84%

6.64%

0.49

 

LW/True Alpha Event Equity Index

4.00%

8.23%

13.61%

7.18%

0.46

 

Relative Value

 

 

 

 

 

 

LW/True Alpha Convertible Arbitrage Index

3.14%

9.19%

13.55%

5.98%

0.45

 

LW/True Alpha Market Neutral Equity Index

1.01%

1.16%

1.58%

1.74%

0.46

 

LW/True Alpha Volatility Arbitrage Index

3.00%

5.64%

7.99%

4.49%

1.60

 

Background: Lyster Watson & Company established a diverse selection of single manager hedge fund strategy indices for use with our proprietary True Alpha rating and ranking system (US Patent No. 7,707,092), which also served as a source of research, revealing that certain hedge fund strategies can provide optimal hedge fund replication solutions, an investment strategy separate from our fund-of-hedge-funds portfolios.

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