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Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum
witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of
February, the Lyxor Hedge Fund Index is up 2.2% year to date, with 80% of the funds
in positive territory.
The CTA rally, which started in May 2014, showed signs of fatigue. Managers suffered
from trend reversals in oil prices and U.S rates that impacted markets throughout
the month. CTAs still managed to end the month flat as all assets were eventually
correctly aligned during the last week of February (+3.6% last week). As such, some
questions remain regarding their ability to outperform in the near term as the US
bond market rally seems to get closer to an end.
All engines were supportive for CTAs last week: equities and bonds rallied, the USD
rose against the EUR and commodities fell. The 3.6% performance of CTAs last week
compensated for earlier losses in February. As such, some questions remain regarding
their ability to outperform in the short term as the bond rally has lately showed
signs of fatigue. It may take a few weeks for CTAs to adapt to rising bond yields.
The same story applies to commodities, whose prices fell last week but overall rose
during the course of February.
"For the full month of February, event driven was up 2.2%, outperforming rival
strategies. Risk appetite has...................... To view our full article Click here
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