Komfie Manalo, Opalesque Asia: Hedge funds shed more in April with the Lyxor Hedge Fund Index down 0.9% during
the month (-2.8% YTD), but there was some good news with alternative
UCITS showing
strong inflows in Europe.
In its Weekly Briefing, Lyxor
Asset Management said that fixed income and credit arbitrage
outperformed, buoyed by dovish central banks and significant credit spread
tightening across the board (U.S. and Europe; investment grade and high
yield). Asian credit funds did particularly well in April.
Philippe Ferreira, senior strategist at Lyxor AM, commented, "Meanwhile,
CTAs underperformed as a result of the rise in bond yields in the U.S. and
Europe. Over the last two months, they reduced markedly their long fixed
income exposure but were still exposed to the rise in bond yields.
Finally, event
driven funds continue their recovery. "
Alternative UCITS surge in Europe
There has been much discussion over recent weeks on the outflows suffered
by the hedge fund industry. Several data providers estimated the decline in
global hedge fund capital in the first quarter of 2016 at about $15bn.
Yet, despite that, strong inflows into alternative UCITS in Europe have
gone somewhat unnoticed. Lyxor cited date from Morningstar that says
alternative
UCITS experienced net inflows of EUR 3.6bn in March, bringing the cumulated
figure to EUR 7.7bn in Q1-16 (based on the universe of funds availab...................... To view our full article Click here
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