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Komfie Manalo, Opalesque Asia:

Hedge funds have been displaying elevated resiliency and seem well positioned relative to traditional assets, said Lyxor Asset Management in its Weekly Briefing. The researchers said that hedge funds were not immune to this sell-off, and were slightly down last week. Indeed, the reversal in USD hurt global macro managers while event driven funds remained under pressure.

Philippe Ferreira, senior cross asset strategist at Lyxor AM, said, "The return of dispersion and the emergence of multiple themes are helping L/S equity managers produce strong alpha. Macro traders are also benefitting from a flurry of relative value opportunities, thanks to their conservative positioning, and have been able to successfully navigate the markets. Event driven is lagging; the corporate situation remains unsettled by macro drivers and has been adversely impacted by sector bias."

The report added that the Lyxor Hedge Fund index was down 0.3% in the week ended Aug. 18. Global macro hedge funds, for example, were down 1.2% in the week because of developments in China that affected U.S. dollar valuations, while event-driven strategies were flat.

L/S equity mitigated the losses thanks to conservative positioning and strong alpha generation. Unsurprisingly, within the group, Asian-focused funds unde......................

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